Why iPhone 14 Is the Most Expensive in Apple's History?

The production cost of the iPhone 14 series has increased by 20% compared to the previous model, becoming the most expensive phone produced by Apple. Here in this article, the reason behind this high cost of production.

Why iPhone 14 Is More Expensive?

The high production cost is mainly due to the A16 Bionic chips used in the iPhone 14 Pro and Pro Max models. The new Bionic chip costs $110, which is 2.4 times more than the A15 version used in the iPhone 13 Pro Max, which was released last year.

iPhone 14 also features new camera components including Sony's range of CMOS image sensors. The sensors are up to 30% larger than those on previous models and priced about 50% higher at $15.

iPhone 14 components come primarily from US suppliers, which account for 32.4% of parts costs, about 10% points higher than the 2021 model.

Despite this, most iPhones were assembled by Apple in China, but they are now diversifying to other places like India and Southeast Asia.

High Cost & Low-profit Margin

Like its predecessors, the iPhone 14 mirrors Apple's strategy of offering high-performance devices that differentiate themselves such as 4nm chips and new camera components.

The cost of producing the iPhone 14 Pro Max, by assembling the parts, is $ 501, $ 60 more than the production of the iPhone 13 Pro Max that went on sale last year.

Apple raised the prices of the iPhone 14 series in Japan, noting the weakness of the yen, but it did not raise its prices in the United States and some other markets, where the iPhone 14 Pro Max with the smallest storage capacity is sold for $ 1099, unchanged from the corresponding 2018 version (XS Max), as the Company appears to have decided to bear the additional production costs rather than pass them on to consumers, which means that the Company's profit margin has likely shrunk.

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