iPhone 16 Pro Max Cost Less Than $500 Despite $1200 Price Tag, Says TD Cowen

TD Cowen, a market research agency, calculated the cost of components for the iPhone 16 Pro Max, which was found to be 7% higher than the previous generation.

The total cost of components for producing the iPhone 16 Pro Max with a 256GB flash memory, along with assembly and packaging, is approximately $485 (for the iPhone 15 Pro Max, it's $453). However, the new model is priced at $1200 in the US.

The most expensive components in the iPhone 16 Pro Max are the display and rear camera module, with each costing $80. Furthermore, the camera is the component that has increased the most compared to the previous generation, adding $10, while the costs for RAM and flash memory increased by $5.

The cost of components for the standard version of the iPhone 16 has increased to $416, while for the iPhone 15, this figure was $395.

It is important to note that in this case, the costs for research and development, logistics, and other expenses not borne by Apple are not included.