The A16 Bionic chip in iPhone 14 Pro models costs $110 to manufacture, which is 2.4 times more than A15 chip in iPhone 14 models.A Nikkei teardown of Apple's iPhone 14 series models revealed that production costs jumped nearly 20 per cent from its previous iPhone generation which is an all-time high.
"The company has not raised prices for its latest model in the US and some other markets, but higher production costs mean that the company's profit margin has likely shrunk," the report mentioned on Friday.
The production of iPhone 14 Pro Max costs Apple $501, up more than $60 from iPhone 13 Pro Max.The higher production cost is reportedly due to the A16 Bionic chips in the iPhone 14 Pro models.According to the report, Parts for the iPhone 14 primarily come from US suppliers, accounting for 32.4 per cent of costs.
Apple raised iPhone prices in some countries, such as Japan and Australia, but not in the US and other markets owing to foreign exchange rates as the US dollar has been very strong this year.The A16 Bionic chip in iPhone 14 Pro and iPhone 14 Pro Max offers experiences like the Dynamic Island, powers all-day battery life, and delivers impressive computational photography capabilities.
With two high-performance cores and four high-efficiency cores, the new 6-core CPU is up to 40 per cent faster than the competition and easily handles demanding workloads.A16 Bionic features an accelerated 5-core GPU with 50 percent more memory bandwidth perfect for graphics-intensive games and apps and a new 16-core Neural Engine capable of nearly 17 trillion operations per second, according to Apple.
The CPU, GPU, Neural Engine and image signal processor seamlessly work together to support the new camera hardware and perform up to 4 trillion operations per photo.