Apple A16 Bionic costs more than twice to manufacture compared to A15

Tokyo: The A16 Bionic chip in iPhone 14 Pro models costs $110 to manufacture, which is 2.4 times more than A15 chip in iPhone 14 models.
A Nikkei teardown of Apple’s iPhone 14 series models revealed that production costs jumped nearly 20 per cent from its previous iPhone generation which is an all-time high.
“The company has not raised prices for its latest model in the US and some other markets, but higher production costs mean that the company’s profit margin has likely shrunk,” the report mentioned on Friday.
The production of iPhone 14 Pro Max costs Apple $501, up more than $60 from iPhone 13 Pro Max.
The higher production cost is reportedly due to the A16 Bionic chips in the iPhone 14 Pro models.
According to the report, Parts for the iPhone 14 primarily come from US suppliers, accounting for 32.4 per cent of costs.