The production cost of iPhone 16 Pro Max is almost a third of its price

Market research firm TD Cowen has revealed the total manufacturing cost (bill of materials) of a 256GB iPhone 16 Pro Max, which includes parts, product assembly and packaging. According to their survey, the total cost of manufacturing the 256GB version of the iPhone 16 Pro Max is only $485, which is almost a third of the price.

According to Tekna Technology Media’s mobile news service, the iPhone 15 Pro Max costs $453 to build, which is $32 (or 7%) less than the iPhone 16 Pro Max. As can be seen from the table, the cameras and display are one of the most expensive components of the iPhone 16 Pro Max. Rear camera setup alone accounts for 16% of the total cost of making the model. The display panel and touch screen cost as much as the rear camera system.

By comparison, the iPhone 15 Pro Max’s rear camera setup costs $70, 15 percent of the total manufacturing cost. This may be due to the lower price of the 12-megapixel ultra-wide camera compared to the 48-megapixel camera on the latest Pro Max model. Interestingly, the super-capable A18 Pro chip on the latest iPhone costs just $5 more than the A17 Pro that powers its predecessors. Memory and storage costs also increased by $5 each. Other improvements, like a bigger battery, apparently cost the same — $15.

Significantly, the cost of raw materials for the standard iPhone 16 has also increased from $395 to $416. The company also lists the iPhone 16 for $100 more than the iPhone 15 on its US website. On other fronts, all iPhone 16 series models come with a new Capture button that makes the camera more accessible. It’s also interesting that the BOM analysis doesn’t even mention the newly added button, while a previous report mentioned that it could cost users up to $750 to replace. To see the latest news, refer to Tekna media technology news page.