Here’s how much an iPhone 14 actually costs for Apple, and how much it’s sold to you

News JVTech Here’s how much an iPhone 14 actually costs for Apple, and how much it’s sold to you

The iPhone 14 costs even more than the iPhone 13

We already told you about it when they were released in September 2022, and you must have seen it happen: the iPhone 14 range has increased its prices. After iPhone 13 which kept the prices of the previous year, the economic context that we have known since the shortage of components and the conflict in Ukraine got the better of the price of the most popular smartphone in the world.

Thus, and with the disappearance of the mini version of the iPhone after two years of existence, the most affordable model is the iPhone 14 which is priced at 1019€. The €1000 mark having been exceeded for the first time in 2017 with the legendary iPhone X, it therefore becomes the minimum five years later.

Smartphones can do more and more things, photo quality is getting better and better, battery life is getting longer, and consumers are keeping them longer and longer. So the prices go up, fine. But aren’t you curious how much each iPhone costs Apple, before the brand sells it to us?

Here is the production cost of the iPhone 14 Pro Max

Apple does not officially communicate on the cost price or the margins they apply to their products. We therefore have to find it by ourselves, with more or less precision. This is what the Counterpoint site does every year for the iPhone, by analyzing the BoM. It literally means Bill of Material, and corresponds to the amount that manufacturers and suppliers receive for the manufacture of a product, here the iPhone 14 Pro Max, the most successful and expensive model currently available from Apple.

The iPhone 14 Pro Max has a very large 6.7-inch screen and the new Dynamic Island, which replaces the notch and brings new, very practical little features. The 14 Pro max starts at 128 GB of storage for a price of 1479€. This is a historically high amount, but how much does it cost to produce?

According to Counterpoint, an iPhone 14 Pro Max costs Apple 464 dollars, or about 433 euros, which is 3.7% more than last year’s iPhone 13 Pro Max. Here are the parts of each component:

Apple makes 1000€ of margin?

If we do a simple subtraction, we realize that:

• Cost price of the iPhone 14 Pro Max: €433
• Final cost of the iPhone 14 Pro Max at Apple: 1479€
• Remaining amount: 1046€

Does Apple make a €1046 margin? As you might expect, that is not the case at all. Indeed, Counterpoint’s calculations only take into account the amounts paid to manufacturers of the iPhone, but there are many other very important expenses to consider:

• packaging
• Assembly
• The distribution
• research and development
• Apple Stores
• Marketing and communication, a crucial area for Apple