Apple created a new buzz in the smartphone world on September 9 by introducing the iPhone 16 series. The models have been subject to criticism for their technical specifications, and their pricing has also sparked debate. Recently, the cost of the iPhone 16 Pro Max was revealed, shedding light on how much profit Apple is making.

How much does the iPhone 16 Pro Max cost?

While Apple hasn’t introduced a significant design change compared to its predecessor, important improvements were made by addressing the issues in the iPhone 15 series. Additionally, a new Shutter Button, which was not present in previous models, is now featured in this model.

According to reliable sources from TD Cowen, the cost of the iPhone 16 Pro Max has been calculated at $485. The smartphone starts at $1,199 in the U.S. Meanwhile, the cost of its predecessor, released last year, was $453, showing a $32 difference between the two models. So, what components account for this difference?

In the iPhone 16 Pro Max, the most expensive components are the display and the triple rear camera system, both of which cost $80. While Apple offered a 12 Megapixel resolution ultra-wide camera in the iPhone 15 Pro Max, this resolution has been increased to 48 Megapixels in the iPhone 16 Pro Max. This change increased the camera’s cost from $70 to $80.

Apple is earning a gross profit margin of 59.6% on each iPhone 16 Pro Max sale. However, it’s important to note that this cost is based solely on the device’s components. Research and development investments, employee salaries, and store expenses are not included in this calculation. Therefore, the gross profit margin shouldn’t come as a surprise.

What are your thoughts on this topic? Feel free to share your opinions with us in the comments section below.