Nikkei: iPhone 15 Pro Max component costs are up by 12% compared to 14 Pro Max

23 October 2023
The new titanium frame, tetraprism 5x zoom camera and the A17 Pro chipset serve as the main drivers of cost.

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SuperSpruce, 30 Oct 2023Wow, thanks for the detailed analysis! I'm a bit surpr... moreIt only accounts for going from 0-256 GB. Doubling the storage does increase only the NAND flash cost but doesn't double it, and everything else is more or less consistent, including the profit margin UFS integrators add to the equation (also I may have exaggerated with saying "a lot more" in my original comment, because a few dollars of profit doesn't make that term justice). That seems to be one of the very minor reasons why after n years you kinda never see devices below a certain storage capacity, and that bottom threshold keeps increasing as NAND gets cheaper through the years.

    EsseLowNitro, 30 Oct 2023Should be at least ~$13.2 for the 256 GB NANDs themselves (... moreWow, thanks for the detailed analysis! I'm a bit surprised how high the costs per storage are, but does your $21 for 256GB account for going from 0-256GB of storage or 256-512GB? I'd wager the latter is quite a bit cheaper, but that's what the OEMs love to upcharge to $100-$200.

      SuperSpruce, 24 Oct 2023Where can I find the cost of the flash storage? I'd be... moreShould be at least ~$13.2 for the 256 GB NANDs themselves (yes, two, since the fastest phones use "dual-channel" storage), tho other factors add to the price. That seems to be bulk price before proper die packaging and yield quality testing. The more defective chips there are, the more each working chip costs. Also, the OEM can add SLC NAND to use as storage cache (to improve speed and power efficiency) in their devices, going for $0.5-0.4 for 128-256 MB (respectively, it really doesn't make a lot of sense). The companies selling "all-in-one", standardized UFS chips may charge a little (or a lot) more than just a sum of parts used to create the UFS. Apple avoids this unknown extra by going the more obvious, nonstandard route.

      I'd wager the average 256 GB flash storage piece costs about ~$21, all peripheral factors considered.

      It seems like it's a half-dead site, but check out DRAM Exchange. The design of the site alone tells a lot about how far you should be from anything not offered for free there. Or check out device teardowns from the usual companies that do that, like Counterpoint Research, etc (two other companies that I can't remember the name of have been featured in GSMArena news articles many times already, one of which has gone under but still left its footprint on the internet).

        Anonymous, 23 Oct 2023Chinese phones cost way less, still sold for same price in ... moreWhich phones exactly are on your mind? Nobody has margins anywhere close to Apple in the smartphone space. The closest second is Samsung, and even they have between a third and half of Apple's margins. The rest are below 15 % typically.

        Several Chinese flagships has a BoM around the same, or more, than iphone 15 Pro Max, yet sells for less due to smaller margins. Not to mention likely has a lower volume to spread the development and support costs.

        Also don't forget that Apple also have a software monopoly on their devices. The only application store and a huge cut on the apps/subscriptions sold/offered through it. This is what makes apple such a wonderful company for investors. Massive margins and revenue as well as extremely loyal customers, easily held in place by feeling special thanks to products placements and sponsorship deals with celebs and agencies. They're fairly early adopters as well, started "invading" KPOP videos many years ago.

          Where can I find the cost of the flash storage? I'd be shocked if it was over $10 for 256GB.

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            • Popop
            • 33d
            • 24 Oct 2023

            Anonymous, 23 Oct 2023Hi Everybody Excuse me, Did they solve the iPhone 15 Pro M... moreThere is no heating problem in Ba Sing Se.

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              • No Regrets
              • nw}
              • 24 Oct 2023

              This is from the source article
              Apple discontinued the 128-gigabyte model for the 15 Pro Max and set the minimum price at $1,199, a $100 uptick. As it took the wraps off the new iPhone 15 range at an event in September, Apple emphasized that the new entry point did not represent a price hike as the 2022 version of the Pro Max with the same amount of memory cost the same.

              Add to this there is a chart in 2019 manufacturing cost were 38% (2023 now 46%)
              That means in 2019 a person paid 2.5 times the cost to produce it ( 2023 double)

              It really doesn't matter, I believe you could hand out a flyers to people who entered an Apple store and they would still buy the phone.

              Apple are still making money

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                • Anonymous
                • xjH
                • 24 Oct 2023

                Can't they make a shiny/glossy titanium frame. I really miss the glossy metal frame of the older pro maxes. Even some flagship Android has a shiny aluminum frame pixel, s23, Meizu and Xiaomi why can't apple manufacture something like that?. (My opinion tho)

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                  • S
                  • xjH
                  • 24 Oct 2023

                  Whatever the cost to build a single unit, it is profitable for them.
                  Or else they would shut their shop way back.
                  But fans don't understand it cause they are 🤓😅

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                    • Anonymous
                    • gIQ
                    • 23 Oct 2023

                    Anonymous, 23 Oct 2023Chinese phones cost way less, still sold for same price in ... moreFalse sense of quality. And greed, of course.

                      justasmile, 23 Oct 2023They went backwards and forwards.2 steps backwards, 1 step forwards and a couple sideways

                        Anonymous, 23 Oct 2023Even better it should be made with plutonium !!should be made of vibranium!

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                          • Anonymous
                          • 0p}
                          • 23 Oct 2023

                          Bodygard, 23 Oct 2023Much, much, much below 800. They don't want people to ... moreChinese phones cost way less, still sold for same price in Europe.
                          What's the excuse?

                            Anton., 23 Oct 2023Are you jealous of his success? hahaha???

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                              • Anonymous
                              • gCF
                              • 23 Oct 2023

                              gandElf, 23 Oct 2023Soon Iphone frame will be made of the most expensive alloy,... moreEven better it should be made with plutonium !!

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                                • Anonymous
                                • gCF
                                • 23 Oct 2023

                                77, 23 Oct 2023Only the sides are titanium, not the back plate they cheape... moreNot only that but only the outside part of the frame is titanium. Inside of the frame is still aluminium.

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                                  • Anonymous
                                  • HF2
                                  • 23 Oct 2023

                                  Hi Everybody
                                  Excuse me, Did they solve the iPhone 15 Pro Max heating problem?

                                    Anonymous, 23 Oct 2023Final cost is surely below 800. Dont forget, outside US... moreMuch, much, much below 800. They don't want people to know the real numbers of course. Those numbers are reached through agreements with their partners, for low prices high volume of parts together with long term commercial pacts etc
                                    But those agreements are never revealed to the public or media. I worked in Nokia, in the early 2000's with the repair and logistics partners in my country, i know what's up.

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                                      • Anonymous
                                      • m62
                                      • 23 Oct 2023

                                      Jman, 23 Oct 2023I’ve had the phone for a month and had no thermal issues. Y... moreNoone has been baited, you have just gotten lucky. The thermals have mostly been fixed but it still seems to be an issue for many after the supposed fix in iOS 17.0.3. There are also a ton of other issues still, as expected the current major update aka iOS 17 is as problematic as always. And on top of that, the phone still gets warmer than others, even with a phone where the fix worked.

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                                        • Anonymous
                                        • m62
                                        • 23 Oct 2023

                                        Soooo last years iPhone was even more overpriced than this one? This thing is as expensive as a Samsung S23 Ultra in Europe and to be honest, I don't see how it can ask for the same price

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