Apple unveiled its highly anticipated iPhone 15 series last month. While the initial reception from users has been positive, the devices faced some early challenges, particularly related to heating issues. Recent reports suggest that the production costs for the iPhone 15 have surged, primarily due to escalating component prices. This cost increase may have repercussions for consumers in the form of higher prices for the forthcoming iPhone 16 lineup in 2024.
According to a recent report from Nikkei Asia, the manufacturing cost for the iPhone 15 Pro Max is projected to be around $588, marking a notable 12 per cent increase compared to its predecessor, the iPhone 14 Pro Max. Over the period from 2018 to 2021, the total parts cost for the Pro Max models fluctuated between $400 and $450. However, 2022 witnessed a substantial 20 per cent hike in component costs, culminating in the current peak of $558. Specific components also saw significant price increases, with the telephoto camera in the iPhone 15 Pro Max jumping by 38 per cent to $30, and the titanium frame’s cost increasing by 43 per cent to $50 when compared to the previous stainless steel frame.
Another noteworthy cost increase comes from the A17 Pro chip, which is estimated at $130 (approximately Rs 10,800), signifying a 27 per cent rise compared to the A16 Bionic chip.
Notably, the standard iPhone 15 models have not been exempt from these price hikes. The standard iPhone 15’s component cost now stands at $423, reflecting a 16 per cent increase over the iPhone 14. The iPhone 15 Plus has been calculated at $442, marking a 10 per cent hike over its predecessor. The iPhone 15 Pro, on the other hand, exhibits an 8 per cent increase with a component cost of $523.
Despite these mounting production costs, Apple has, so far, chosen not to raise the retail prices of its iPhone 15 models in the current year. The most significant change observed was the discontinuation of the 128GB Pro Max model. As a result, consumers who typically opt for the 128GB model must now pay an additional $100 to obtain the device.
However, Tokyo-based research firm Fomalhaut Tecno Solutions, in collaboration with Nikkei, speculates that if Apple continues to absorb the impacts of increased production costs, it may have adverse effects on its bottom line. Consequently, Apple might opt to adjust the retail prices for its iPhone 16 series upon their anticipated release in 2024.