Apple paid 20% more for the iPhone 14 line’s production than it did for the iPhone 13 family. The details can be found in a new report that Nikkei Asia created after researching the Cupertino firm’s supply chain.
For instance, Apple now spends the equivalent of US$501 to assemble the iPhone 14 Pro Max, compared to US$461 for its predecessor.
Market analysts claim that Apple’s costs have risen dramatically as a result of the chip supply crisis, with the A16 Bionic chip alone costing $110.
The A16 Bionic chip costs 2.4 times more than the A15 predecessor, which is also available in both iPhone 14 and iPhone 14 Plus models . This may have influenced the choice to keep the old chip in these devices.
Sony’s new CMOS sensors, which cost $15 instead of $10, are another reason for the price hike. They are 50% more expensive than their predecessors.
After the chip crisis, the cost of producing the iPhone 14 line has increased 20%
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Apple’s agreement with Samsung Display ultimately ensures that the company won’t be hit with any unexpected costs. But the report shows that all components made by US-based manufacturers are up 10%.
Apple’s second-largest component supplier is South Korea. With China’s share steadily declining as the company works to lessen its reliance on that nation.
Finally, analysts claim that because Apple hasn’t raised iPhone prices in the United States, the company is having a greater impact on its profit margin. The business will still be able to overcome this issue by selling more of the devices, though.
In the United States, the price of the iPhone 14 starts at USD799. The iPhone 14 Plus costs USD899. The iPhone 14 Pro and iPhone 14 Pro Max cost USD999 and USD1,099 respectively.
Today marks the official launch by Apple of the new iPhone 14 Plus to its first-party storefronts (October 7, 2022). Although it has the same large mobile form factor like the 14 Pro Max’s model. The latter has a wider range of camera and display features. Apple may nevertheless be hoping that people looking for a new device that could not cost a fortune will find the larger screen appealing.