The total cost of iPhone 14 Pro manufacturing cost exposure is 3.7% higher than that of 13 Pro
[ Mobile China News] The iPhone 14 Pro is so expensive, how much it costs to manufacture is a topic of great concern to everyone. The investigation found that Apple appears to have spent a higher bill of materials (BOM) cost when manufacturing its latest “Pro” version of the iPhone. According to a research report on the cost of core components purchased from the supply chain by market research firm Counterpoint, the average manufacturing cost of the iPhone 14 Pro is $464 (about 3170 yuan). That’s 3.7% more than the total BOM cost of the iPhone 13 Pro — things like the new processor, better display, and better camera add to the cost.
According to the research report, the higher cost of the iPhone 14 Pro is due to Apple’s slightly increased spending on displays, cameras, and processors. Among them, the cost of the processor has increased by US$11 (about RMB 75). The reason for the increase in cost is that Apple has transferred from the 5nm A15 Bionic SoC to the 4nm process on the A16 Bionic. The new generation of processors represents one of the most advanced processor manufacturing standards in the commercial field, so it is understandable that Apple is more expensive to manufacture.
Another key factor in the rise in total BOM cost is Apple’s use of a 48-megapixel main camera, which, together with other algorithm advancements, has led to an increase in the total cost of manufacturing the phone by $6.3 (approximately RMB 43), compared with the iPhone 13 Pro.
Combined, the display, camera and processor account for 51% of the total cost of the iPhone 14 Pro, compared with 47% for the iPhone 13 Pro, according to Counterpoint.
Notably, the cellular components of the iPhone 14 Pro cost 13% less than the 13 Pro, and other miscellaneous components cost less overall. This was driven by falling prices for 5G network components, which have become more mainstream and therefore more affordable due to larger assembly sizes. Such margin changes are common from year to year.
Counterpoint also noted that Apple has multiple suppliers for each component segment. Samsung , for example, is Apple’s main display supplier, while Sony supplies the main camera sensors . However, three companies, GSEO, Largan, and Sunny Optical, are suppliers of the iPhone 14 Pro’s main camera. For cellular components, Apple’s suppliers include Broadcom, Qorvo, Qualcomm and Skyworks. In terms of chips, Kioxia and SanDisk provide NAND Flash storage media, while Micron, Samsung and SK Hynix provide RAM modules.