Though it’s only been a short time since Apple introduced the iPhone 16 Pro, its production cost has already been revealed. According to TD Cowen, manufacturing costs have risen again with this generation, making it the most expensive iPhone to produce to date. However, the retail price remains the same as the previous model. It’s important to note that these figures come from the multinational investment bank, not Apple.
Some data is particularly striking, such as the cost for Apple to produce its own processors and how the company has managed to keep costs down in certain key areas. As previously mentioned, the cost of manufacturing an iPhone remains similar to past years—about one-third of the retail price.
Once again, the screen and cameras are the most expensive components. The increase to a 6.9-inch display has slightly raised costs compared to last year’s panels. The cost of memory, internal storage, and the processor has also gone up.
It’s particularly striking that, according to this data, the cost for each Apple A18 Pro chip in its smartphones is around $45. This is nearly $160 less than what Android manufacturers pay for high-end processors, which can exceed $200.
Although the cameras are nearly identical to last year’s models, their cost has also risen. The introduction of a new-generation sensor and the 48-megapixel ultra-wide-angle lens has contributed to the price increase.
Overall, the cost of iPhone hardware has risen from $453 to $485, while the starting retail price remains the same as last year. Hardware now accounts for 60% of the total manufacturing cost, with various other elements contributing to the final figure.
Image | Apple
View 0 comments