You will be shocked to know how much Apple spends to make iPhone 15 Pro Max that it sells for Rs 1.6 lakh

Although the iPhone 15 Pro Max is certainly one of the most expensive, non-foldable smartphones on the market right now, what may come as a surprise is just how much Apple is spending to make an iPhone 15 Pro Max, just in materials.

Counterpoint Research has released a report detailing the blended bill of materials (BoM) cost for Apple’s latest flagship, the iPhone 15 Pro Max.

The report reveals that the production cost of the iPhone 15 Pro Max is $502 or Rs 41,865, marking an 8 per cent increase compared to the iPhone 14 Pro Max. The base model considered in the report features 256GB of storage.

Several factors contribute to the increased production cost. Firstly, the A17 Pro chip, built using a cutting-edge 3-nanometer process technology, adds $30 Rs 2500 per unit to the production cost compared to the A16 Bionic chip used in the previous model. Apple has secured an exclusive deal with TSMC to obtain the 3-nanometer chips ahead of the expected timeline.

Additionally, the iPhone 15 Pro Max incorporates a new tetraprism lens for 5x optical zoom, costing $25.1 or Rs 2100 more than the zoom lens on the iPhone 14 Pro Max. Another contributing factor is the replacement of the stainless steel frame with a new titanium alloy frame, which incurs an additional cost of $7 or Rs 600.

Despite the increase in production costs, the iPhone 15 Pro Max retains the highest profit margin in Apple’s current lineup. The report highlights Apple’s significant control over design, scalability, costs, and profits, a level of control not commonly seen in other companies.

It is important to note that the report does not factor in research and development costs or shipping costs. Additionally, Apple’s decision to eliminate the 128GB version and set the starting price at $1,199 for the 256GB version in the US, and Rs 1,59,900 has contributed to maintaining a high profit margin for the iPhone 15 Pro Max.