iPhone 16 Pro Max BOM Cost Revealed, Is Apple's Profit Still Astonishing?

iPhone 16 Pro Max BOM Cost Revealed, Is Apple's Profit Still Astonishing?Today, news surrounding the iPhone 16 series has generated renewed buzz. Following rumors of order cuts, market research firm TDCowen has unveiled the bill of materials (BOM) cost for the iPhone 16 Pro Max, sparking discussions about Apple's profit margins

iPhone 16 Pro Max BOM Cost Revealed, Is Apple's Profit Still Astonishing?

Today, news surrounding the iPhone 16 series has generated renewed buzz. Following rumors of order cuts, market research firm TDCowen has unveiled the bill of materials (BOM) cost for the iPhone 16 Pro Max, sparking discussions about Apple's profit margins.

According to TDCowen's investigation, the BOM cost for the 256GB version of the iPhone 16 Pro Max comes in at $485, equivalent to approximately 3400 yuan. This cost encompasses components, product assembly, and packaging, not just the cost of all the individual parts. Compared to its predecessor, the iPhone 15 Pro Max, the BOM cost of the iPhone 16 Pro Max has increased by $32, representing a 7% growth. The BOM cost of the previous generation iPhone 15 Pro Max was $453.

The report also reveals that the most expensive components in the iPhone 16 Pro Max are the screen and camera module, both priced at $80, accounting for 16% of the total cost. Compared to the previous generation, both these costs have increased by $10, while storage costs have also risen by $5.

It's important to note that the BOM cost of the iPhone 16 has also seen an increase compared to the iPhone 15, standing at $416 and $395 respectively.

By comparing these BOM costs to the selling prices of the iPhone 16 series, it becomes clear that Apple's profit margins remain impressive. While some might argue that this only reflects the BOM cost and doesn't account for research and development, transportation, personnel costs, company operations, etc., even so, it underscores the high gross profit of the iPhone 16 series. Apple holds the highest gross profit margin among global phone brands, a feat unmatched by other brands.

Apple's success lies in its strong brand power and pricing capability. Despite its premium prices, its products consistently garner consumer enthusiasm. However, it's noteworthy that the gross profit margin of the iPhone 16 series might be lower than last year's iPhone 15 series. This is because the cost of the iPhone 16 series has increased while the selling price remains mostly unchanged compared to the iPhone 15 series. As stated during the launch, the new generation of iPhones offers "more for the same price."

Despite this, Apple continues to maintain high profit margins, prompting reflection on the source of their profitability. Is it technological innovation, brand effect, or other factors?

The disclosure of this BOM cost has reignited discussions about Apple's profit margins. How to perceive Apple's profitability and how to balance the interests of consumers and businesses are questions worth pondering.