Apple is charging US$100 extra for its flagship iPhone this 12 months, although it solely prices an additional $37.7 to fabricate in comparison with the iPhone 14 Professional Max, in keeping with Counterpoint Analysis.
With this enhance of $100 within the beginning retail worth, the iPhone 15 Professional Max is predicted to offer Apple extra revenue because it has the best gross margin within the iPhone 15 household, regardless of being the most expensive mannequin, notes the analysis group.
Based on Counterpoint, these are the areas the place the prices have risen
- First 3nm process-powered utility processor: Apple’s new-generation cellular platform, the A17 Professional, makes use of TSMC’s most superior 3nm fabrication know-how and packs greater than 19 billion transistors in a die, 18% greater than that of the A16 Bionic. Because of the improved 6-core GPU structure, the iPhone 15 Professional Max’s GPU efficiency is 20% sooner. In consequence, the A17 Professional can ship vastly improved gaming efficiency with a breakthrough in enabling real-time 3D ray tracing. Nevertheless, this SoC improve has resulted in a value enhance of round $30 in contrast with the A16.
- Apple’s first 5x telephoto digital camera: One other notable improve is the 5x telephoto digital camera that includes an equal 120mm focal size. This digital camera consists of a quadruple reflection prism that permits mild rays to bounce 4 occasions, permitting customers to seize sharper close-up pictures from larger distances. Lante Optics is the first provider of this prism. Moreover, to match the brand new telephoto system, Apple has designed the 3D sensor-shift OIS on this digital camera which might make as much as 10,000 micro-adjustments per second, enabling customers to seize clearer, sharper images and extra steady movies. The event and meeting of the stabilization mechanism concerned a collective effort from Cirrus Logic and LG Innotek. The general value of the digital camera system within the iPhone 15 Professional Max is 34% costlier than that of the iPhone 14 Professional Max.
- Titanium alloy casing: Apple has adopted a titanium alloy within the iPhone 15 Professional Max casing body, which has diminished the machine’s weight by round 20 g, making it the lightest Professional Max mannequin ever. The price of the brand new casing within the iPhone 15 Professional Max is 18% larger than that of the 14 Professional Max.
Based on Counterpoint, these are the areas the place the prices have fallen
- Reminiscence: Apple has upgraded the iPhone 15 Professional Max’s DRAM to 8GB, which is 2GB larger than that of its predecessor. Nevertheless, the worldwide reminiscence market was in a downtrend from This fall 2022 to Q3 2023, each DRAM and NAND flash costs have decreased by greater than 30%. This has labored in favor of Apple, serving to it offset a number of the different value will increase because the contribution of reminiscence chips dropped by 34% in comparison with the iPhone 14 Professional Max.
- Show: The show worth can be in a downtrend. Aside from Samsung Show, LG Show has additionally began supplying iPhone LTPO shows. This has contributed to a discount in show prices by 4% within the iPhone 15 Professional Max in comparison with that of the iPhone 14 Professional Max.
Listed here are the rising share of self-designed parts (per Counterpoint)
Apple’s vertical ambitions are evident as its self-designed parts, such because the processor, the upgraded UWB and energy administration ICs, are taking part in an more and more vital position within the general BoM value of the iPhone 15 Professional Max, garnering Apple nice economies of scale and management over the efficiency and end-user expertise. Our estimates point out that these self-designed parts account for 25% of the whole BoM value of the iPhone 15 Professional Max, up from 22% within the iPhone 14 Professional Max final 12 months.
Listed here are the important thing takeaways from Counterpoint’s research
- Apple has grown to a stage the place it has vital management over design, innovation, scalability, prices and earnings of all the iPhone and the opposite merchandise in its portfolio.
- That is serving to Apple with differentiation and can be permitting it to train not solely vital promoting energy but in addition shopping for energy by way of nice vertical design experience and sourcing of parts.
- Additionally, having probably the most highly effective smartphone SoC manufactured on the most superior course of node has allowed Apple to design an SoC with high-performance CPU, pro-class GPU and devoted neural engines to construct pervasive AI experiences, effectively mixing with its vertical software program (OS) functionality and (apps) ecosystem.
- Apple is, thus, elevating the desk stakes for competitors with its flagship, which is ready to be probably the most profitable iPhone when it comes to prime line and backside line.
