iPhone 16 Pro Max Production Cost Revealed: These Are the Priciest Parts

iPhone 16 series was unveiled by Apple last month and teardown videos and durability tests of the iPhone 16, iPhone 16 Plus, iPhone 16 Pro and iPhone 16 Pro Max are currently doing rounds on the Web. Most recently, the bill of materials (BOM) details of the iPhone 16 Pro Max have surfaced online, revealing the total manufacturing cost of the device. The BOM cost of the latest flagship is $32 (roughly Rs. 2,500) higher than that of its predecessor. This year, Apple has upgraded the camera, display and chipset of the new iPhone 16 Pro Max and this has led to an increase in the cost of producing the handset.

iPhone 16 Pro Max Bill of Materials Hits $485

According to a cost breakdown from TD Cowen seen by AppleInsider, the total cost to manufacture the 256GB version of the iPhone 16 Pro Max is $485 (roughly Rs. 30,000). This is $32 higher than the BOM cost of the iPhone 15 Pro Max’s $453 (roughly Rs. 38,000).

The display and rear camera system unit are the priciest parts of the iPhone 16 Pro Max at $80 (roughly Rs. 3,800), each accounting for around 16 percent of the BOM. The same display and rear camera components of the iPhone 15 Pro Max costs $75 (roughly Rs. 6,200) and $70 (roughly Rs. 6,000), respectively.

The iPhone 16 Pro Max’s new Camera Control button costs $19 (roughly Rs. 1,500), just $3 more than the iPhone 15 Pro Max’s Action Button as per the TD Cowen report. New RAM technology costs $17 (roughly Rs. 1,200), instead of $12 (roughly Rs. 1,000) of the iPhone 15 Pro Max. The new Bionic chip costs $45 (roughly Rs. 3,700) while the internal storage costs $25 (roughly Rs. 2,000).

The iPhone 16 Pro Max’s price starts at $1,199 (roughly Rs. 1,00,700) for the base variant and the BOM cost of $485 appears to be around one-third of the price tag. This indicates that Apple has a 59.6 percent gross margin for each unit sold.

The iPhone 16 Pro Max’s price starts at Rs. 1,44,900 for the 256GB model in India. It runs on the new A18 Pro chip and boasts a 6.9-inch Super Retina XDR OLED display with a 120Hz refresh rate (ProMotion) and up to 2,000nits peak brightness. It has a triple rear camera setup that comprises a 48-megapixel wide primary camera, a 48-megapixel ultra-wide-angle camera and a 12-megapixel telephoto camera. The handset carries a 12-megapixel TrueDepth camera on the front.