In Short:
Apple recently launched the iPhone 16 series, including the Pro Max model. Teardown videos revealed that the manufacturing cost of the iPhone 16 Pro Max is $485, which is $32 more than the previous model. Key upgrades include a better camera and display. The starting price is $1,199, giving Apple a gross margin of about 59.6% per unit sold.
The iPhone 16 series, which was unveiled by Apple last month, has sparked significant interest online as teardown videos and durability tests of the iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max circulate widely. A recent development has revealed the bill of materials (BOM) for the iPhone 16 Pro Max, indicating a higher total manufacturing cost compared to its predecessor. The BOM cost has increased by $32 (approximately Rs. 2,500) due to upgrades in the camera, display, and chipset of the new model.
iPhone 16 Pro Max Bill of Materials Hits $485
According to a cost breakdown provided by TD Cowen and reported by AppleInsider, the total manufacturing cost for the 256GB version of the iPhone 16 Pro Max is $485 (around Rs. 30,000). This marks a $32 increase from the BOM cost of the iPhone 15 Pro Max, which was $453 (approximately Rs. 38,000).
The most expensive components of the iPhone 16 Pro Max are the display and the rear camera system, each costing $80 (roughly Rs. 3,800), which accounts for about 16 percent of the total BOM. In comparison, the same components in the iPhone 15 Pro Max cost $75 (approximately Rs. 6,200) for the display and $70 (around Rs. 6,000) for the rear camera.
The new Camera Control button on the iPhone 16 Pro Max is priced at $19 (approximately Rs. 1,500), which is just $3 more than the Action Button featured on the iPhone 15 Pro Max, according to the TD Cowen report. Additionally, the upgraded RAM technology now costs $17 (about Rs. 1,200), compared to $12 (around Rs. 1,000) in its predecessor. The new Bionic chip has a manufacturing cost of $45 (approximately Rs. 3,700), while the internal storage is priced at $25 (roughly Rs. 2,000).
The iPhone 16 Pro Max starts at $1,199 (approximately Rs. 1,00,700) for the base model, making its BOM cost about one-third of its retail price. This suggests that Apple enjoys a gross margin of 59.6 percent on each unit sold.
For consumers in India, the pricing for the iPhone 16 Pro Max begins at Rs. 1,44,900 for the 256GB model. The device operates on the new A18 Pro chip and features a 6.9-inch Super Retina XDR OLED display with a 120Hz refresh rate (ProMotion) and a peak brightness of up to 2,000 nits. It includes a triple rear camera setup with a 48-megapixel wide primary camera, a 48-megapixel ultra-wide-angle camera, and a 12-megapixel telephoto camera, as well as a 12-megapixel TrueDepth camera on the front.
