The iPhone 16 Pro would see its production cost increased by around 6%. It would be more than $150 more expensive to make than a Google Pixel 9 Pro.
Competition is tough for the number one spot among smartphone sellers between Apple and Samsung with their iPhone 16 and Galaxy S24. But the Apple firm is in reality in a much more comfortable position than its competitors thanks to truly maddening work on its margins.
If we take the figures from Counterpoint Research for the third quarter of 2023 for example, you will notice at a glance the very significant gap between Apple, not only to Samsung, but to the entire market. Apple dominates Samsung by 26 points on revenue from its phone sales alone.
An iPhone 16 Pro cost above the Pixel 9 Pro
According to the Japanese economic daily Nikkei (via 9to5Google), Apple’s margin on the iPhone could have declined somewhat on the recent iPhone 16 Pro. An in-depth analysis, based on the disassembly of said model and an estimate of the price of each of its components, indicates that the production cost compared to the iPhone 15 Pro would be up 6%. It would thus increase to 568 dollars.
In detail, Nikkei suggests that the Samsung M14 screen would cost 110 dollars, the camera system 91 dollars and the A18 Pro chip 135 dollars.
The same article therefore assesses that the production cost of the Pixel 9 Pro is lower than that of the iPhone 16 Pro. The paper puts it at $406, with a Tensor G4 costing $80, the same M14 screen costing $75, and the photo modules charging $61.
Remember that the cost of production is far from being the only cost explaining the price of a product. We must add the considerable sums invested in marketing, delivery or research and development.
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