Wednesday, November 30, 2022
HomeScience/TechnologyThe iPhone 14 lineup cost Apple 20% more than its predecessor

The iPhone 14 lineup cost Apple 20% more than its predecessor

Apple paid 20% more for the production of the iPhone 14 line than for the iPhone 13 family. The details can be found in a new report released by Nikkei Asia after investigating the Cupertino company’s supply chain.

For example, Apple is now spending the equivalent of $501 to mount the iPhone 14 Pro Max, compared to $461 for its predecessor.

Market analysts argue that Apple’s costs have risen dramatically as a result of the chip supply crisis, with the A16 Bionic chip alone costing $110.

The A16 Bionic chip costs 2.4 times more than the A15 predecessor, which is also available in both iPhone 14 and iPhone 14 Plus models. This may have influenced the choice to keep the old chip in these devices.

Sony’s new CMOS sensors, which cost $15 instead of $10, are another reason for the price hike. They are 50% more expensive than their predecessors.

After the chip crisis, the production costs of the iPhone 14 line have increased by 20%

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Apple’s agreement with Samsung Display ultimately ensures that the company does not incur unexpected costs. But the report shows that all components made by US-based manufacturers are up 10%.

The second largest supplier of parts to Apple is South Korea. China’s share is steadily declining as the company works to reduce its reliance on that country.

Finally, analysts argue that the company has a greater impact on its profit margin because Apple has not increased iPhone prices in the United States. However, the company will still be able to solve this problem by selling more of the devices.

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In the United States, the iPhone 14 price starts at USD799. The iPhone 14 Plus costs $899. The iPhone 14 Pro and iPhone 14 Pro Max cost USD 999 and USD 1,099 respectively.

Today marks the official launch by Apple of the new iPhone 14 Plus for its first-party storefronts (October 7, 2022). Although it has the same large mobile form factor as the 14 Pro Max model. The latter has a wider range of camera and display functions. Nevertheless, Apple hopes that people looking for a new device that shouldn’t cost a fortune will find the larger screen attractive.



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