A month has passed since Apple introduced its newest iPhone models, which included the iPhone 14, iPhone 14 Plus, iPhone 14 Pro, and iPhone 14 Pro Max. In comparison to their predecessors, the two iPhone models designated as “Pro” have a number of noteworthy enhancements, while the other models only get minor improvements. The pricing of the new models have been kept the same as the prices of the iPhone 13 models from the previous year, with the exception of the iPhone 14 Plus. This may not prove to be a financially successful choice for Apple. According to the most recent report from Nikkei Asia, the cost of producing iPhone 14 models has increased by 20 percent, noting that this marks an all-time high for the cost of manufacturing these models. The Cupertino giant’s profit margins have suffered as a result of increased production costs; nonetheless, the pricing for all three models have been maintained at the same level.
According to the findings of the investigation, Apple has spent between $400 to $450 on the development of a ‘Pro Max’ model each year since 2018. However, an iPhone 14 Pro Max will set you back $501 (about Rs 41,361) from Apple. The reason for this price increase is the increased cost of the A16 Bionic processor, which will set you back an additional $110 on its own (around Rs 9,080). It’s possible that the higher cost of the brand-new A16 Bionic processor was the motivation for Apple’s decision to use the A15 Bionic chip in the two iPhone 14 variants that aren’t the Pro version. To put this into perspective, the price of the A16 Bionic is about 2.4 times that of the A15 Bionic.
In addition, the iPhone 14 Pro versions are equipped with new CMOS sensors manufactured by Sony. These new sensors are 30 percent bigger than their predecessors, but their price has increased by a factor of 50. Apple charges $15 for each individual sensor (around Rs 1,238). According to Minatake Kashio, who works for Fomalhaut Techno Solutions, a research company located in Tokyo, “Apple plainly has no other alternative except to resort to a strategy of mounting high-performance gadgets in order to distinguish itself since it cannot compete on new functionalities.” Since Apple started manufacturing its own components, there has been an increase in the percentage of the overall cost that is attributable to the acquisition of parts from the United States, which currently accounts for one third of the total.