iPhone 16 build cost marginally higher than iPhone 15, reveals BOM analysis

The latest iPhone 16 costs more to manufacture than the iPhone 15. Although the estimated manufacturing cost is higher, the escalation isn’t steep.

Apple iPhone 16 costs more to make than iPhone 15

Apple launched the iPhone 16 series recently. These premium Apple phones have a new and dedicated camera shutter button, which means the company embedded new hardware.

Multiple teardowns have now revealed the insides of the latest iPhone 16. Additionally, trade and industry analysts have attempted to calculate the actual cost of the iPhone 16 Pro Max.

According to Apple Insider, the new iPhone 16 models cost more than the previous iPhone 15 generation. This isn’t surprising because the manufacturing costs for the iPhone 16 Pro and the Pro Max models would have risen due to increased component prices.

The Apple iPhone’s Pro and Pro Max models usually incorporate cutting-edge hardware. Hence, the cost of manufacturing these models is usually higher than their predecessors. However, what’s interesting is that the Bill Of Materials (BOM) reportedly reveals that Apple’s top-end model costs just $32 more to make than its previous generation.

Apple kept production expenses down for the latest models

The figures shared by TD Cowen suggest a 256GB iPhone 16 Pro Max would have cost Apple about $485 to manufacture. This is a cumulative cost, which includes all the components, box, and assembly process.

The Apple iPhone 15 Pro Max had an estimated BOM that totaled $453. Similarly, the estimated BOM of the iPhone 16 came up to $416, while the iPhone 15 BOM was $395. Needless to say, the difference in the manufacturing cost between the iPhone 16 and the iPhone 15 models is quite small.

It is, however, surprising to see how well Apple has managed to keep cost escalation in check despite the rising prices of individual components. For example, the 8GB RAM for the iPhone 16 Pro Max reportedly costs $17. The 6GB RAM for the previous model was estimated to cost just $9.

The display technology used in the latest iPhone is also expensive. Additionally, the latest iPhone Pro Max models have a larger screen as well. This would have further contributed to the increase in the BOM.

The cost of manufacturing and the price of the latest tech is certainly higher. However, despite the cost escalation of the hardware, Apple hasn’t increased the launch price of the latest iPhones. The company has kept the same prices or slightly lowered them compared to last year’s models.