Apple created a new buzz in the smartphone market on September 9, by introducing the iPhone 16 series. Among the various models present, the iPhone 16 Pro Max naturally stands out, being the most popular model. Now, the analysis has shown how much Apple costs to produce the new iPhone 16 Pro Max and the profits it makes. The value will surprise you.

How much does it cost to produce the iPhone 16 Pro Max?
The new iPhone 16 models were the target of criticism and approval for their technical specifications, and their prices also sparked controversy. now, It has been detected The cost of iPhone 16 Pro Max components and assembly, showing how much profit Apple makes from each unit sold.
Although Apple has not introduced a major design change compared to its predecessor, important improvements have been made in resolving issues with the iPhone 15 series. In addition, the new shutter button, which was not present in previous models, is now present in this model .
In the case of the iPhone 16 Pro Max, the manufacturing cost was estimated at $485 by research firm TD Cowen, which is not much higher than the cost of the iPhone 15 Pro Max, which was $453. This is despite the larger screen, larger battery, or new camera control button. There's also the faster A18 Pro SoC that was designed from the ground up with Apple Intelligence in mind.

Apple has a gross margin of 59.6% on each sale
In fact, the most expensive components of the iPhone 16 Pro Max are the larger 6.9-inch screen and the Tetraprism camera array, both of which feature a slight increase in price compared to the iPhone 15 Pro Max. The new LPDDR5X memory is also more expensive than its predecessor, as is the storage memory. .
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The new camera control pressure-sensitive button costs a lot and that's the least of the worries about this overall price. These buttons on the iPhone 16 Pro Max are priced at $19, bringing Apple's gross profit margin on its 2024 flagship to 59.6% on each sale of that model.
However, it is important to note that this cost depends exclusively on the components of the device. Investments in research and development, employee salaries, and store expenses are not included in this calculation. Therefore, the gross profit margin should not be surprising.