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.

Tag: Nikkei

Popular Stories

iOS 18 CarPlay Feature

iOS 18 Adds These 5 New Features to CarPlay

Thursday June 13, 2024 7:44 am PDT by
Apple did not mention CarPlay during its WWDC keynote this week, but iOS 18 includes a handful of new features for the in-car software. Overall, there is not a whole lot new for CarPlay on iOS 18, with changes seemingly limited to the Messages and Settings apps so far. Below, we recap everything new for CarPlay on iOS 18. New for CarPlay on iOS 18 1. Contact Photos in Messages App...
ios 18 button bulge

iOS 18 Adds Pop-Out Bezel Animation When Pressing iPhone Buttons

Tuesday June 11, 2024 10:40 am PDT by
iOS 18 includes a small but interesting change for the buttons on the iPhone, adding more of a visual element when changing volume, activating the Action button, or locking the screen. When you press an iPhone button in iOS 18, the display bezel bulges outward slightly. This feature is available for the volume buttons, Action button and the power button, and it will also likely be used for...
iOS 18 Mock iPhone 16 Feature Gray

Revealed: iOS 18 Works With These iPhone Models

Monday June 10, 2024 3:57 am PDT by
iOS 18 will be compatible with the same iPhone models as iOS 17, according to a post on X today from a private account with a proven track record of sharing build numbers for upcoming iOS updates. iOS 18 will be compatible with the iPhone XR, and hence also the iPhone XS and iPhone XS Max models with the same A12 Bionic chip, but older iPhone models will miss out. Here is the full...

First Look at Messages via Satellite in iOS 18

Thursday June 13, 2024 11:29 am PDT by
Apple has been gradually expanding its suite of satellite connectivity features for iPhone, and iOS 18 brings a significant new one in the form of Messages via satellite. The feature allows users to send and receive iMessages and SMS texts, including emoji and Tapbacks, while out of range of cellular and Wi-Fi networks. CNET met up with Apple's senior director of platform product marketing,...
iOS 18 Siri Integrated Feature

Massive iPhone Upgrade Coming This Week But These Devices Will Miss Out

Sunday June 9, 2024 1:25 pm PDT by
Apple is planning a major AI overhaul in iOS 18, with a feature set it is referring to as "Apple Intelligence." However, these new features will not work on older iPhones, even if they do appear on the new operating system's device compatibility list. Apple's initial AI roadmap for iOS 18 is said to come in two parts: Basic AI features that will be processed on-device, and more advanced...
Generic iOS 18 Feature Real Mock

Your iPhone 15 Can Show the Time When It's Out of Battery in iOS 18

Wednesday June 12, 2024 2:57 pm PDT by
The iPhone has had a Power Reserve function that holds back a small amount of battery life to allow features like Find My and NFC unlocking to work even when your device has died, and in iOS 18, Apple seems to be improving the feature further for the iPhone 15 models. As demonstrated on Reddit, when the battery on an iPhone running iOS 18 is exhausted, the phone can continue to show the time ...

Top Rated Comments

xpxp2002 Avatar
9 months ago
God forbid Apple only make 40% or 45% profit margin on these devices…
Score: 48 Votes (Like | Disagree)
kirk.vino Avatar
9 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
9 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
9 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
9 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
9 months ago
Keep guessing! Eventually, the more expensive iPhone rumor will turn out correct.
Score: 12 Votes (Like | Disagree)