The iPhone 16 series finally hit stores last month. Since then, everything from teardowns to durability tests have been popping up. Now, a report has revealed the Bill of Materials (BOM) for the iPhone 16 Pro Max, confirming the total manufacturing cost of the device.
The iPhone 16 Pro Max, priced at $1,199 in the US, is the most expensive model in Apple’s latest mobile device series. However, the total cost of the components is well below that figure. This is quite normal, and Apple is not the only one that does this. There are other costs associated with producing a smartphone than just the raw price of the components and assembly. There are expenses for logistics, software development, the design team, etc.
iPhone 16 Pro Max’s Bill of Materials hits $485; slightly higher than iPhone 15 Pro Max
TD Cowen, an investment firm, estimated the BOM of the iPhone 16 Pro Max at about $485 per unit. In comparison, its predecessor, the iPhone 15 Pro Max, had a BOM of $453. The new-gen model brings a new, slightly more powerful chip, a larger battery, a larger display, and a new Camera Control button. So, the slight increase in cost seems to be in line with the hardware improvements.
According to the report, the display ($80) and the rear camera system ($80) are the most expensive components, accounting for 16% of the iPhone 16 Pro Max’s Bill of Materials each. Compared to the iPhone 15 Pro Max, the same components cost $75 and $70, respectively. There’s a new LPDDR5X RAM technology that now costs $17 (the iPhone 15 Pro Max’s LPDDR5 RAM was $12). The new Bionic chip ($45) and internal storage ($25) are also a little more expensive.
The new Camera Control button didn’t represent a significant increase in overall cost. According to the TD Cowen report, it costs $19, just $3 more than the iPhone 15 Pro Max’s Action Button. In the end, the iPhone 16 Pro Max’s $485 total BOM gives Apple a 60% gross margin to maneuver between additional expenses and net profit.
