Apple pays more for each A16 Bionic chipset used on the iPhone 14 Pro models
Counterpoint states that each A16 Bionic chipset is priced $11 higher than the A15 Bionic. This year Apple limited the use of the new chip to its iPhone 14 Pro series handsets. The non-Pro models are powered by the previous generation A15 Bionic SoC.
Used on the iPhone 14 Pro series, the A16 Bionic chip costs Apple $11 more per unit than the A15 Bionic
To reiterate, the iPhone 14 Pro Max is equipped with the A16 Bionic and the chipset counts toward 20% of the cost of materials paid by Apple to build each of its top-of-the-line handsets. Additionally, the components that Apple designs itself for use in the iPhone 14 Pro Max make up 22% of the bill of materials (BoM) cost, a higher percentage than seen with the iPhone 13 Pro Max. The BoM is a list of materials needed to build a certain product.
Speaking of 5G, the extra cost to add 5G compatibility to the iPhone 12 line resulted in one of the largest year-over-year increases in component costs. The 2020 iPhone series was the first to support 5G connectivity. Adding the parts needed to allow the iPhone 12 models to connect to 5G airwaves resulted in Apple paying 26% more for components compared to what it paid for the previous iPhone 11 series.
These figures reveal just the cost of the materials needed to build an iPhone 14 Pro Max with 128GB of storage. It doesn’t include the cost to assemble the product, packaging the product, and shipping the product. Other costs that can’t be overlooked include Research & Development, sales, and marketing.
After years of keeping iPhone pricing static, we could see prices rise this September
We previously said that after a few years of keeping iPhone pricing static, we could see a price hike for the entire iPhone 15 line this coming September. Be prepared.
