Analysts say the iPhone 16 collection prices Apple a number of extra {dollars} to provide than its iPhone 15 counterparts due to rising element prices.
Apart from bodily teardowns of the most recent iPhone fashions, there are additionally price breakdowns. One such evaluation of Apple’s iPhone 16 vary pricing up particular person elements 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 elements, 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 costliest 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 acquired the most important improve 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 very 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 costliest at $65 or 16% of the full BOM. Once more, the most important worth improve 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 embrace 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. Nevertheless, sentiment is outwardly 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 had been steady in China, at 24.2 million, a 30% improve year-on-year. Nevertheless, 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 models, whereas fourth-quarter builds keep at 80 million models. The iPhone 16 vary will make up roughly 65 million models.
The combo of iPhone 16 Professional and Professional Max models to others is greater than the iPhone 15 for the second half of the 12 months, the analysts imagine. The iPhone 16 Professional and Max models combine is claimed to be 66%, in opposition to 58% for the iPhone 15 Professional and Max in the identical interval final 12 months.