iPhone 16 Pro Max BoM reveals manufacturing cost; iPhone 16 production cut due to low demand | Tech Tips

The iPhone 16 series is finally here and is already available for customers to get their hands on. Like last year there are four models in the series, including the Pro Max version. Now, a new report has revealed the Bill of Materials (BOM) for the iPhone 16 Pro Max. This confirms the total manufacturing cost of the phone.

Separately, in a new research report seen by 9to5Mac, analyst Barclays reports that Apple may have cut down the iPhone 16 production by three million units. The analyst says that these cuts were made at a “key Semiconductor” partner for iPhone orders through the December quarter based on ‘recent supply channel checks’.

iPhone 16 Pro Max Bill of Materials

• The iPhone 16 Pro Max is priced at $1,199 (approx Rs 1,00,700) in the US/Rs 1,44,900 in India and is the most expensive model in the series.
• TD Cowen, which is an investment firm, estimated (via) the BOM of the iPhone 16 Pro Max 256GB at $485 (around Rs 40,800) per unit. In comparison, the iPhone 15 Pro Max BOM was $453 (around Rs 38,100).
• The iPhone 16 Pro Max comes with a new-generation A18 Pro chipset, a larger battery, a larger display and a new camera control button.
• The increase in cost seems to be consistent with the hardware improvements.
• According to the report, the display and the rear camera system are the most expensive at $80 (around Rs 6,700) each, thereby accounting for 16 percent of the iPhone 16 Pro Max’s Bill of Materials each.

• In comparison, the iPhone 15 Pro Max’s same components cost $75 (around Rs 6,300) and $70 (approx Rs 5,900), respectively.
• The new LPDDR5X RAM technology now costs $17 (around Rs 1,500), compared to $12 (around Rs 1,000) for the iPhone 15 Pro Max’s RAM.
• The new chipset costs $45 (around Rs 3,800) and the internal storage $25 (around Rs 2,100) is also more expensive than the iPhone 15 Pro Max.
• The new camera control button didn’t account for a significant price increase.
• According to the TD Cowen report, the new camera control button costs $19 (around Rs 1,600), just $3 (around Rs 250) more than the iPhone 15 Pro Max’s Action Button.

Apple cuts down iPhone 16 orders

Barclays reports that Apple has cut down the iPhone 16 orders. The analyst says that its ‘Sell-through checks” show a 15 percent decline YoY for the iPhone 16 launch. For the September quarter, Barclays says that iPhone shipments are on track for 51 million units. 

The report says that the iPhone 16 has two additional days of sell-through this year than the iPhone 15 last year – 9 days in 2023 vs 11 days in 2024. Barclays says that the December quarter “looks increasingly at risk” for iPhone shipments due to the recent order cuts. 

The ‘staggered rollout of Apple Intelligence’, the limited adoption of AI outside of the US, and the “lack of hardware differentiation” are the reasons for the iPhone 16 demand issues, according to Barclays.

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