In comparison to the A15 found in the iPhone 14 and the iPhone 13 series, the A16 Bionic chip featured in the iPhone 14 Pro models costs $110 to produce.
Three iPhone 14 series units were disassembled by Nikkei Asia, which looked at the CPU and camera parts among other things. The media outlet claims that production expenses for the new series were 20% more than for the previous iPhone generation.
Calculations indicate that the construction of the iPhone 14 Pro Max cost Apple $501 in components, an increase of almost $60 over the iPhone 13 Pro Max. According to the company, since the release of the iPhone XS Max in 2018, component prices for Max models have fluctuated between $400 and $450. The company describes this as a high production cost.
According to reports, the A16 Bionic processors in the iPhone 14 Pro variants are to blame for the increased production cost. The processor costs $110, which is more than 2.4 times what the A15 in the iPhone 13 Pro Max costs.
The A16 Bionic employs TSMC’s 4-nanometer technology, whereas the A15 uses TSMC’s 5-nanometer process. Sony’s CMOS image sensor, one of the new camera parts in the iPhone 14, is 30% bigger than in earlier generations and costs $15, which is a 50% increase.
Compared to the iPhone 13, 32.4% of expenses for the iPhone 14’s components came from US sources, an increase of 10%. South Korea, who was the leading supplier in 2021, had a decline in manufacturing share of nearly five points, to 24.8%.
According to the research, since Apple raised iPhone prices in some nations, such as Australia and Japan, but not in the US or other markets, greater production costs led to decreased business earnings.
Foreign currency rates, however, are the most probable cause. In 2022, the US dollar has been strong relative to other currencies, making imports more affordable for Americans to purchase.
Nikkei was assisted in looking into the gadgets by Tokyo-based research firm Fomalhaut Techno Solutions.
