Apple started making less money on new iPhones. An increase in the price of the following models is inevitable

Nikkei Asia analysts report that a key component in the iPhone 14 Pro and iPhone 14 Pro Max costs Apple much more than its counterpart in the iPhone 13 series. Thus, the company receives a much smaller profit from the sale of each unit.
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According to industry sources, the cost of the first 4nm Apple A16 Bionic chip used in the top devices of the iPhone 14 series is $110. For comparison, the A15 Bionic chip for the iPhone 13 Pro was 2.4 times cheaper at just $46.

It is interesting that the performance increase of A16 is only 15-17%, and the characteristics of the graphics processor do not differ from A15 at all.

The average production costs for the iPhone 14, iPhone 14 Pro and iPhone 14 Pro Max models increased by approximately 20% compared to the equivalent models of the previous generation.

Given that Apple did not raise prices for the 2022 iPhone models, the company’s profits could be significantly reduced. Most likely, this will be reflected in the company’s financial report for the first quarter of 2023.

Based on this, it is logical to assume that the next generation of Apple smartphones, the iPhone 15, will increase in price. Moreover, the alleged A17 Bionic will be based on TSMC’s 3nm process, which will also cost much more than current iPhone chipsets.

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