iPhone 16 Models' Manufacturing Costs Edge Up Compared To iPhone 15; Check Out Key Factors Behind The Price Increase

The iPhone craze is more than just a trend and each new release sparks a new excitement and anticipation resulting to long lines outside Apple stores and also a flurry of online orders.

The latest iPhone 16 series also marked headlines recently for its features but also for the increased cost of production. According to AppleInsider report, the manufacturing of iPhone 16 is a few dollars more expensive than its predecessor, the iPhone 15.

A Look at Production Costs

As the report, the recent figures from TD Cowen reveal that producing a 256GB iPhone 16 Pro Max costs Apple about USD 485 which includes the amount of all components, packaging, and assembly expenses.

While comparing it, the iPhone 15 Pro Max had a Bill of Materials (BOM) estimated at USD 453, meaning the new model is around USD 32 pricier, according to AppleInsider.

In a similar note, the non-Pro models of the iPhone 16 also saw a surge in production costs, with the BOM rising to USD 416 from the iPhone 15’s USD 395, that is, an increase of approximately USD 21 per handset, AppleInsider reported.

What are the key components driving the cost?

What makes the iPhone 16 Pro Max more expensive is the display and the rear camera module, each priced at USD 80, making up 16 per cent of the total BOM, added the report.

As the per report, the rear camera cost surged of USD 10 compared to the previous one. Apart from this, the memory and storage also resulted a price hike, with the memory cost increasing from USD 9 in the iPhone 15 to USD 17 for the iPhone 16.

Furthermore, competition from other smartphone manufacturers, particularly Huawei with its foldable Mate XT, is also influencing market dynamics, according to AppleInside.