I remember when Apple significantly lowered its profit margins once…
(It wasn’t pretty.)
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iPhone 15's Record High Production Costs Could Push Up iPhone 16 Prices
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I remember when Apple significantly lowered its profit margins once…
(It wasn’t pretty.)
This article was written as if Apple sells the iPhone in USA MSRP, worldwide.
There are 1.3b active iPhone users worldwide vs 150m in the USA, so approximately only 10% of iPhone pros are sold at $999/$1199.
There are 1.3b active iPhone users worldwide vs 150m in the USA, so approximately only 10% of iPhone pros are sold at $999/$1199.
Developing the Vision Pro, you mean. IOS improvements have been marginal for years, and quality hasn't been particularly great as well.
These people are obsessed for a price increase. If it happens, it happens. And life will continue
Because technological progress isn’t linear, and also not equally distributed. Semiconductors have had diminishing improvements for the past decade or so. Batteries also haven't been improving much. Physics is a bitch.
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this is only true for the US market?
In the EU - and i guess the UK - iPhone 15*.* are crazy expensive
the base 15 Pro 128GB costs 1200 Eur (1270 USD)
In the EU - and i guess the UK - iPhone 15*.* are crazy expensive
the base 15 Pro 128GB costs 1200 Eur (1270 USD)
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Presumably the UK price includes VAT as well. Otherwise it would be another 20% on top of the above quoted prices. I don't really see the point though in comparing prices like this - unless you know all of the details about forex, taxes, import duties etc then there's really little point. Also there's the price of competing goods in each market to consider and public perception. Eg if you have a phone that is viewed as incredibly premium, then you may as well price it appropriately regardless of any comparison to the base price in the USA.
Which ever way you look at it, the pro max still has more than 100% mark up 🫨
The iPhone 15's production costs are appreciably higher than those of last year's iPhone 14 models, marking record high component prices that Apple could pass onto customers in 2024, Nikkei Asia reports.
The iPhone 15 Pro Max is calculated to cost $558, a 12% increase over the iPhone 14 Pro Max model released in 2022. This is a record high for the total cost of an iPhone's components. From 2018 to 2021, the total cost of parts for Apple's iPhone "Pro Max" models ranged from $400 to $450. Component costs rose around 20% in 2022 before reaching today's record high of $558.
The cost of the iPhone 15 Pro Max's telephoto camera now stands at $30, a 380% increase over the previous model. Likewise, the titanium frame costs $50, a 43% increase over the stainless steel frame of previous devices. The A17 Pro chip comes in at $130, a 27% increase over the A16 Bionic chip.
The other models in the iPhone 15 lineup are also not immune to cost increases. The standard iPhone 15's components come in at $423, a 16% increase compared to the iPhone 14. The iPhone 15 Plus is calculated at $442, a 10% increase over its predecessor, while the iPhone 15 Pro grew by 8% to $523.
Despite increased costs, Apple did not increase the retail prices of any of its iPhone models this year and chose to absorb the impact of increased expenses. The only notable change was the discontinuation of the 128GB Pro Max model, meaning that users who normally purchased the 128GB model now have to pay $100 more to obtain the device.
In collaboration with Nikkei, Tokyo-based research company Fomalhaut Techno Solutions believes that if Apple continues to absorb the impact of increased production costs, its bottom line will soon take a hit. As a result, Apple may finally choose to hike iPhone retail prices upon the launch of next year's iPhone 16 lineup.
Article Link: iPhone 15's Record High Production Cost Could Push Up iPhone 16 Prices
$3 trillion dollar company can afford to absorb the cost.
Also stop wasting money on crap research project like Vision Pro and the rumoured car. Vision Pro is dead out the gate and god knows how much cash was wasted on car research.
Also stop wasting money on crap research project like Vision Pro and the rumoured car. Vision Pro is dead out the gate and god knows how much cash was wasted on car research.
Prices increased every year for 5 years straight from 2017 in the UK. That pattern only stopped this year.
Ummm… just how much more volume do you think there is available?
Sales tax (or equivalent) is included in prices for more than just those indicated by the asterisk. For example, in the UK the price for the 15 Pro 128GB is £999 with VAT. The Apple price (without VAT) is only £832 which at the current exchange rate is around $1,011 USD or pretty much the same as the $999 pre-sales tax price in the U.S.
That first one is just an absolute 🤡 take.
As for the second, not only do you have no idea… but are you really that clueless about the existence of Apple CarPlay?
This sounds like a load of bull to me. The reason they splintered their iPhone line into “Pro” and standard is because the pro units cost $200-$400 more for starting costs.
The iPhone 15's production costs are appreciably higher than those of last year's iPhone 14 models, marking record high component prices that Apple could pass onto customers in 2024, Nikkei Asia reports.
The iPhone 15 Pro Max is calculated to cost $558, a 12% increase over the iPhone 14 Pro Max model released in 2022. This is a record high for the total cost of an iPhone's components. From 2018 to 2021, the total cost of parts for Apple's iPhone "Pro Max" models ranged from $400 to $450. Component costs rose around 20% in 2022 before reaching today's record high of $558.
The cost of the iPhone 15 Pro Max's telephoto camera now stands at $30, a 380% increase over the previous model. Likewise, the titanium frame costs $50, a 43% increase over the stainless steel frame of previous devices. The A17 Pro chip comes in at $130, a 27% increase over the A16 Bionic chip.
The other models in the iPhone 15 lineup are also not immune to cost increases. The standard iPhone 15's components come in at $423, a 16% increase compared to the iPhone 14. The iPhone 15 Plus is calculated at $442, a 10% increase over its predecessor, while the iPhone 15 Pro grew by 8% to $523.
Despite increased costs, Apple did not increase the retail prices of any of its iPhone models this year and chose to absorb the impact of increased expenses. The only notable change was the discontinuation of the 128GB Pro Max model, meaning that users who normally purchased the 128GB model now have to pay $100 more to obtain the device.
In collaboration with Nikkei, Tokyo-based research company Fomalhaut Techno Solutions believes that if Apple continues to absorb the impact of increased production costs, its bottom line will soon take a hit. As a result, Apple may finally choose to hike iPhone retail prices upon the launch of next year's iPhone 16 lineup.
Article Link: iPhone 15's Record High Production Cost Could Push Up iPhone 16 Prices
If they raise costs, it sounds like it would only be the pro line, everything they listed as increases are exclusive to the pro line.
This article is referring to Apple prices, not Apple prices plus local purchase sales (sales tax, VAT, etc.). The posted prices in the EU and UK include VAT while the U.S. prices does not include sales tax. For example, in the UK the price for the 15 Pro 128GB is £999 with VAT. The Apple price (without VAT) is only £832 which at the current exchange rate is around $1,011 USD or pretty much the same as the $999 pre-sales tax price in the U.S.
I lost count how many articles MR had on the homepage leading to the iPhone 15 launch saying prices would rise $100-200.
Turns out the people guessing are no more in the know than the rest of us. They're just hoping they're right so they can pretend like they knew all along.
Turns out the people guessing are no more in the know than the rest of us. They're just hoping they're right so they can pretend like they knew all along.
That's not true. There have actually been multiple years of price DECREASES in the UK. For example, the starting price with VAT of the Pro models went from £1,049 for 11 Pro to £999 for 12 Pro (decrease #1) to £949 for 13 Pro (decrease #2) to £1,099 for 14 Pro to £999 for 15 Pro (decrease #3).
I can see it now... October 2024 Headline : Apple CEO Tim Cook Visits China Amid Reports Of Lower iPhone 16 Sales Compared To iPhone 15
They did and they didn't. Apple absorbed the increased cost of the tetraprism camera by forcing everyone to buy the 256GB SSD upgrade. So while there 15PM has lower margins compared to the 14PM, this is countered by everyone buying that first SSD upgrade.
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That’s the key. As long as, whatever the price is, the value is worth it for approximately 200 million of the over 7 billion people in the world, Apple will continue to sell as many as they usually do.
And, even if 87% of the members of MacRumors think whatever it ends up being is too expensive, as long as the membership of MacRumors isn’t, like, 6 billion people, there’s still plenty enough folks for Apple to sell to
One of the cameras costs $30, read again.