• iPhones cost of production is increased by 20%.
• A16 Bionic chip costs $110 alone.
• South Korea is now the second-largest supplier of phone parts.

According to sources, the cost of parts for the most recent iPhones is  increased by 20%, setting a record. The A16 Bionic chip, which costs $110 alone, is the primary factor in the iPhone 14 Pro Max’s production cost of $501, which is a significant rise from the $461 cost of its predecessor.

Since the Pro Max model’s launch in 2018, Nikkei reported that prices have ranged between $400 and $450. The news source reasoned that if Apple’s production costs increased while its US prices remained unchanged, the company’s profits would undoubtedly suffer.

The A16 Bionic chip is 2.4 times more expensive than its predecessor, the A15, which is still used in the iPhone 14 and iPhone 14 Plus non-Pro variants. Sony’s new CMOS sensors, which are now 30% larger in size but 50% more expensive, with a raw cost of $15, are another factor contributing to the price hike. Additionally, Apple purchases its panels from Samsung Display under a long-standing agreement.

Nearly a third of the entire cost and a 10% increase from 2021 are made up by components for the iPhone 14 devices manufactured by US-based companies. South Korea is now the second-largest supplier of phone parts, primarily as a result of Apple creating its own goods like the chipset.

As Cupertino works to reduce reliance on the Asian market, China’s proportion of the market decreased even further. According to earlier reports, not only the parts but also the assembly process are leaving the nation. The emergency SOS capability is software-based rather than hardware-based, which means it may soon be available in additional areas, according to sources.

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