Analysts say the iPhone 16 sequence prices Apple just a few extra {dollars} to provide than its iPhone 15 counterparts because of rising element prices.
Except for bodily teardowns of the newest iPhone fashions, there are additionally price breakdowns. One such evaluation of Apple’s iPhone 16 vary pricing up particular person parts has decided that the brand new fashions price greater than the earlier iPhone 15 technology.
The figures from TD Cowen say {that a} 256GB iPhone 16 Professional Max prices Apple about $485 to fabricate, together with the parts, field, and meeting course of. By comparability, the iPhone 15 Professional Max had a so-called Invoice of Supplies (BOM) of $453, about $32 cheaper than the newer mannequin.
The non-Professional fashions are additionally extra pricey, with the iPhone 16 BOM coming as much as $416. The iPhone 15 BOM was $395, roughly $21 cheaper per handset.
For the iPhone 16 Professional Max, the most expensive element is a tie between the show and the rear digicam module at $80 or 16% of the full apiece. The digicam can be the element that bought the largest enhance at $10 over the earlier technology.
iPhone 16 Professional Max vs iPhone 15 Professional Max BOM [TD Cowen]
Whereas remaining the identical in portions, the reminiscence and storage within the Professional Max have elevated by the best quantities relative to their price. Every rose by $5 to $17 and $22 respectively.
On the iPhone 16’s BOM, the show is the most costly at $65 or 16% of the full BOM. Once more, the largest worth enhance relative to price stems from reminiscence, from $9 within the iPhone 15 for 6GB to $17 for 8GB.
Different main price adjustments within the iPhone 16 BOM embody the A18 at $45 versus the A16 at $35. In the meantime, the addition of the Digicam Management and Motion Button provides $3 to the Sensors listing.
Softening sentiment
The identical report provides in that there have been no adjustments to construct estimates within the provide chain for the second half of 2024. Nonetheless, sentiment is seemingly softening over time.
The softening is attributed to Apple Intelligence, with the analysts believing the discharge over a number of months to be behind it. There are additionally “competitive headwinds” in China, with the foldable Huawei Mate XT doing much better than anticipated.
Analysis signifies to the analysts that July gross sales have been secure in China, at 24.2 million, a 30% enhance year-on-year. Nonetheless, there are “tougher compares” ranging from September, with softer market demand within the close to time period.
TD Cowen’s third-quarter builds forecast for iPhone is unchanged at 45 million items, whereas fourth-quarter builds keep at 80 million items. The iPhone 16 vary will make up roughly 65 million items.
The combo of iPhone 16 Professional and Professional Max items to others is increased than the iPhone 15 for the second half of the yr, the analysts consider. The iPhone 16 Professional and Max items combine is alleged to be 66%, towards 58% for the iPhone 15 Professional and Max in the identical interval final yr.