What is the production cost of iPhone 14 Pro Max? $501 and it is being sold for $1099

tech.hindustantimes.com:

The muscular iPhone 14 Pro Max - the highly specced model of the new iPhone series - has been the talk of the town for many reasons, including its many exclusive features. And now a new report has provided another reason that will bring more attention to it. This is the production cost. The latest report by Nikkei Asia has revealed that the iPhone 14 Pro Max production cost jumped 20 per cent to $501. The phone is being sold at $1099.

You will be surprised to know that last year's iPhone 13 Pro Max had a production cost of $461. Even before that, the most premium Pro Max models of the iPhone had always been in the range between $400 and $450 since 2018, the Nikkei report has mentioned.

While the jump in production cost is a negative, there is no doubt that the Pro Max is doing well, sales wise. Recently, Apple analyst Ming-Chi Kuo revealed that the iPhone 14 Pro Max accounts for about 60 percent of the total order increase of Pro models. "iPhone 14 Pro Max accounts for about 60% of the total order increase of Pro models, benefiting iPhone ASP/product mix for 4Q22."

There are many reasons behind the rise in the production cost of the iPhone 14 Pro Max. One of these is the addition of the new A16 Bionic chipset which costs $100 all alone. The report says that the new chipset costs 2.4 times more than the A15 Bionic chipset.

Secondly, the upgrades in display and camera sensors are some other reasons for the rise in the production cost of the iPhone 14 Pro Max. The report confirmed that Apple has used Sony's new CMOS sensors which are 30 percent bigger in size and around 50 percent more expensive than before which increased the cost by $15.

What else? The new pill-shaped cutout camera display features the new Dynamic Island set