Apple’s iPhone 16 Pro Max may not flaunt a radical redesign, but it makes significant improvements by addressing the concerns users had with the iPhone 15 series. In addition to various upgrades, this latest flagship is only slightly larger than its predecessor. Interestingly, according to recent estimates, the ‘Bill Of Materials’ (BOM) reveals that producing Apple’s top-end model costs just $32 more. For now, we’ll focus on the component costs of the iPhone 16 Pro Max.
The most expensive components of the iPhone 16 Pro Max are the LTPO OLED display and the rear camera module, each valued at $80. Analysis by TD Cowen shows that the BOM for the iPhone 16 Pro Max totals $485, compared to the iPhone 15 Pro Max’s $453. The display and rear camera carry the heftiest price tags, each at $80.
It’s noteworthy that the larger LTPO OLED screen in the new model is only $5 more expensive than the iPhone 15 Pro Max’s $75 screen. Apple replaced the 12MP ultrawide-angle camera from the iPhone 15 Pro Max with a superior 48MP unit in the iPhone 16 Pro Max, leading to a price increase from $70 to $80.
Among the key upgrades, Apple switched to LPDDR5X RAM from the previous LPDDR5. This shift ensures better bandwidth and efficiency, but increases the cost to $17 per 8GB memory module, up by $5 from the previous model.
Overall, the $485 BOM constitutes 40.4% of the iPhone 16 Pro Max’s U.S. retail price, suggesting that Apple enjoys a 59.6% gross margin per unit. These figures account only for the material costs, as Apple incurs additional expenses tied to production, marketing, and distribution.
