A new teardown analysis by research firm Counterpoint shows that the materials cost of the iPhone 15 Pro Max is $37.7 higher than last year’s iPhone 14 Pro Max. The report estimates that the total bill of materials (BoM) to manufacture the 8GB+256GB iPhone 15 Pro Max is $452, a 8% increase over the previous 6GB+256GB model.
The analysis attributes most of the cost increase to Apple’s upgrades in the iPhone 15 Pro Max, including the new A17 Bionic chip, 5x telephoto camera system, and titanium alloy frame. The A17 is Apple’s first processor manufactured on TSMC’s 3nm process and packs over 19 billion transistors, delivering improved CPU and GPU performance. The telephoto camera uses a complex 5x optical zoom and sensor-shift optical image stabilization, making it 34% more expensive than the 14 Pro Max camera. Finally, the titanium frame, while reducing device weight, costs 18% more than the old stainless steel frame.
Offsetting some of these upgrades are declining prices for memory and displays. Despite increasing RAM to 8GB, Apple benefited from a 30% drop in global memory pricing. The report also notes a 4% reduction in display costs as LG Display joined Samsung in supplying displays for the latest iPhones.
Counterpoint estimates Apple-designed components now comprise 25% of the iPhone 15 Pro Max’s BoM, up from 22% in the previous model. This highlights Apple’s increasing vertical integration and leverage of economies of scale to control performance, experience, and profits.