The iPhone 14 Pro Max is expensive, but how much does it actually cost Apple?

Shall we talk about the iPhone 14 Pro Max? This is the latest model introduced by Apple in September 2022, which marks the pinnacle of smartphone technology.

But, as always, the discussion is about the price. Is the iPhone 14 Pro Max expensive? Apple presented it with prices identical to previous generations, but is the company making a profit from this product?

According to Counterpoint Research, the production cost of a 128 GB iPhone 14 Pro Max is around 433 euros (464 dollars). The price increased compared to the previous model due to two elements: the 48 MP rear camera and the new screen, with AOP support. On the other hand, the communications part became 13% cheaper, thanks to the widespread use of 5G components.

The analysis presented does not detail the cost of each component, but it clearly shows where this increase is being applied. It is immediately clear that it is 3.4% more expensive for Apple to manufacture this new model than the iPhone 13 Pro Max.

Some of the highlights from Counterpoint Research's report include the fact that the A16 Bionic SoC, one of the iPhone's most expensive components, costs Apple about $11 more per unit than the A15 Bionic SoC. The overall "processing" category, which includes the A16 Bionic SoC, now accounts for 20% of the total material cost. Additionally, components created by Apple itself have a larger share of the overall Bill of Material (BoM) cost of the iPhone 14 Pro Max than in the iPhone 13 Pro Max.

Although we are only talking about material costs, the value presented is far below the retail price, which in Portugal is €1,499. This price includes development, transport, marketing, and others, but it is still much higher than the production cost.

In summary, the iPhone 14 Pro Max is expensive, but that's no surprise to anyone. Apple is presenting prices identical to previous generations, but that doesn't mean it's not making a profit from this product. Ultimately, the price is set by the market, and if people continue to buy, Apple will continue to sell.