iPhone 16 Pro Max Estimated to Cost Just $32 More Than iPhone 15 Pro Max, While Retaining the Same $1,199 Base Price and Featuring Multiple Upgrades

Apple may not have placed too much emphasis on introducing a radical redesign for the iPhone 16 Pro Max, but the company has meticulously addressed numerous issues that users encountered with the iPhone 15 series. In doing so, Apple incorporated a series of upgrades that enhance the overall experience. Despite these changes, Apple has managed to keep the production cost increase relatively modest. According to the latest estimates, the ‘Bill of Materials’ (BoM) for the iPhone 16 Pro Max is just $32 higher than that of the iPhone 15 Pro Max. Of course, there are additional costs involved in bringing the device to market, but for now, we’ll focus on the cost of the components inside Apple’s flagship model.

The LTPO OLED Display and Rear Camera Module Are the Most Expensive Components in the iPhone 16 Pro Max, Each Costing $80

Figures provided by TD Cowen and reported by AppleInsider reveal that the iPhone 16 Pro Max has a total BoM of $485, making it $32 more expensive to produce than the iPhone 15 Pro Max, which had a total of approximately $453. A detailed breakdown of the components shows that the display and the triple-lens rear camera setup are tied as the priciest parts in the iPhone 16 Pro Max, each costing $80.

It’s noteworthy that the cost difference for the larger LTPO OLED screen is just $5 higher compared to the iPhone 15 Pro Max’s display, which is estimated to cost around $75. One of the significant upgrades Apple implemented is the jump from a 12MP ultrawide lens on the iPhone 15 Pro Max to a 48MP ultrawide sensor in the iPhone 16 Pro Max, which accounts for the increase in the camera module’s price from $70 to $80.

RAM Upgrade: LPDDR5X Increases Efficiency and Cost

Another notable enhancement Apple has brought to its premium model is the inclusion of LPDDR5X RAM, replacing the LPDDR5 memory used in the iPhone 15 Pro Max. While this upgrade ensures better bandwidth and efficiency, it also comes at a cost. Apple now pays $17 per 8GB memory module, which is $5 more than the memory component in last year’s flagship model.

Overall, the $485 BoM accounts for 40.4% of the iPhone 16 Pro Max’s retail price in the U.S., which starts at $1,199. This suggests that Apple enjoys a gross margin of 59.6% per unit sold. However, it’s important to remember that these figures only represent the cost of the components and don’t factor in other expenditures like R&D, marketing, or distribution.