iPhone 15's Record High Production Costs Could Push Up iPhone 16 Prices

The iPhone 15's production costs are appreciably higher than those of last year's ‌iPhone‌ 14 models, marking record high component prices that Apple could pass onto customers in 2024, Nikkei Asia reports.

iPhone 15 Pro lineup
The ‌iPhone‌ 15 Pro Max is calculated to cost $558, a 12% increase over the ‌iPhone‌ 14 Pro Max model released in 2022. This is a record high for the total cost of an ‌iPhone‌'s components. From 2018 to 2021, the total cost of parts for Apple's ‌iPhone‌ "Pro Max" models ranged from $400 to $450. Component costs rose around 20% in 2022 before reaching today's record high of $558.

The cost of the ‌iPhone‌ 15 Pro Max's telephoto camera now stands at $30, a 380% increase over the previous model. Likewise, the titanium frame costs $50, a 43% increase over the stainless steel frame of previous devices. The A17 Pro chip comes in at $130, a 27% increase over the A16 Bionic chip.

The other models in the ‌iPhone‌ 15 lineup are also not immune to cost increases. The standard ‌iPhone‌ 15's components come in at $423, a 16% increase compared to the ‌iPhone‌ 14. The ‌iPhone‌ 15 Plus is calculated at $442, a 10% increase over its predecessor, while the ‌iPhone‌ 15 Pro grew by 8% to $523.

Despite increased costs, Apple did not increase the retail prices of any of its ‌iPhone‌ models this year and chose to absorb the impact of increased expenses. The only notable change was the discontinuation of the 128GB Pro Max model, meaning that users who normally purchased the 128GB model now have to pay $100 more to obtain the device.

In collaboration with Nikkei, Tokyo-based research company Fomalhaut Techno Solutions believes that if Apple continues to absorb the impact of increased production costs, its bottom line will soon take a hit. As a result, Apple may finally choose to hike ‌iPhone‌ retail prices upon the launch of next year's iPhone 16 lineup.

Related Roundup: iPhone 16
Tag: Nikkei
Related Forum: iPhone

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Top Rated Comments

xpxp2002 Avatar
25 months ago
God forbid Apple only make 40% or 45% profit margin on these devices…
Score: 48 Votes (Like | Disagree)
kirk.vino Avatar
25 months ago
It’s kinda ironic and funny though considering that the 256GB module does not cost $100 more than the 128GB one to manufacture, so Apple has already passed this price hike to their customers in a way.
Score: 35 Votes (Like | Disagree)
mnsportsgeek Avatar
25 months ago
Another year of this huh? How many more years you gonna predict a price increase before you’re finally right?
Score: 34 Votes (Like | Disagree)
contacos Avatar
25 months ago
At those prices I am ready to try a Fold next fall just to try something different. I’ll still have my 15 Plus for my iOS needs
Score: 15 Votes (Like | Disagree)
citysnaps Avatar
25 months ago

God forbid Apple only make 40% or 45% profit margin on these devices…
Not an unreasonable number.

Do you have insight into Apple's overhead and indirect costs, which GPM doesn't cover?
Score: 14 Votes (Like | Disagree)
foobarbaz Avatar
25 months ago
Keep guessing! Eventually, the more expensive iPhone rumor will turn out correct.
Score: 12 Votes (Like | Disagree)