iPhone 14 Pro and Pro Max are expensive to manufacture, A16 Bionic costs twice the cost of A15 to manufacture
“The company has not raised prices for its latest model in the United States and certain other markets, but higher production costs mean the company’s profit margin has likely shrunk,” the report said on Friday.
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The higher production cost is said to be due to the A16 Bionic chips in the iPhone 14 Pro models.
According to the report, parts for the iPhone 14 are mostly sourced from US suppliers, accounting for 32.4% of costs.
Apple has raised iPhone prices in some countries, such as Japan and Australia, but not in the US and other markets due to currency exchange rates as the US dollar has been very strong this year .
The A16 Bionic chip in iPhone 14 Pro and iPhone 14 Pro Max delivers experiences like Dynamic Island, all-day battery life, and impressive digital photography capabilities.
With two high-performance cores and four high-efficiency cores, the new 6-core processor is up to 40% faster than the competition and handles demanding workloads with ease.
A16 Bionic features a 5-core accelerated GPU with 50% more memory bandwidth – perfect for graphics-intensive games and applications – and a new 16-core neural engine capable of nearly 17 trillion operations per second, according to Apple.
The CPU, GPU, Neural Engine and Image Signal Processor work together seamlessly to support new camera hardware and perform up to 4 trillion operations per photo.