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iPhone 16 Pro Max manufacturing costs revealed; Apple reduces iPhone 16 production due to low demand

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HIGHLIGHTS

  • iPhone 16 Pro Max manufacturing cost revealed.
  • Display and rear camera are the most expensive components,
  • Apple cuts production of the base iPhone 16 model.

Apple’s iPhone 16 series is officially launched worldwide, featuring upgraded specifications compared to the previous generation. The iPhone 16 Pro Max is priced at Rs 1,44,900 in India and USD 1,199 in the US, while the iPhone 16 starts at Rs 79,900 in India and USD 799 in the US. Following the launch, new reports have surfaced, detailing the bill of materials (BOM) and production information for the latest iPhone lineup.

iPhone 16 Pro Max Bill of Materials (BOM) breakdown

According to a cost analysis report from TD Cowen (via AppleInsider), the total cost to manufacture the 256GB iPhone 16 Pro Max is USD 485 (around Rs 30,000). This is USD 32 higher than the iPhone 15 Pro Max’s BOM, which was USD 453 (around Rs 38,000).

The display and rear camera system are the most expensive components of the iPhone 16 Pro Max, each costing USD 80 (around Rs 3,800), accounting for about 16% of the total BOM. By comparison, the display and rear camera for the iPhone 15 Pro Max were priced at USD 75 (around Rs 6,200) and USD 70 (around Rs 6,000), respectively.

iPhone 16 Pro Max manufacturing costs

The new Camera Control button on the iPhone 16 Pro Max costs USD 19 (around Rs 1,500), which is just USD 3 more than the iPhone 15 Pro Max’s Action Button. The upgraded RAM technology costs USD 17 (around Rs 1,200), compared to USD 12 (around Rs 1,000) for the iPhone 15 Pro Max. Additionally, the new Bionic chip costs USD 45 (around Rs 3,700), while internal storage is priced at USD 25 (around Rs 2,000).

Apple reduces iPhone 16 orders

According to a Barclays report (via 9to5Mac), Apple has reportedly reduced its iPhone 16 production by three million units. Based on “recent supply chain checks,” analysts believe the cuts were made at a key semiconductor supplier for iPhone orders during the December quarter. 

Barclays also notes that their “sell-through checks” indicate a 15% year-over-year decline in iPhone 16 sales compared to the iPhone 15. Interestingly, the iPhone 16 had two additional days of availability at launch this year compared to last year’s iPhone 15 launch (11 days this year vs. 9 days last year).

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