iPhone 16 Pro Max BOM Reveals Higher Costs, Apple Cuts Production Amid Declining Demand

The iPhone 16 series has officially launched and is now available for purchase. The lineup again consists of four models and, like last year, the Pro Max is the range-topping version. The manufacturing cost of the iPhone 16 Pro Max has been uncovered in a new report by Bill of Materials (BoM).

Meanwhile, Barclays analysts shared in a different research note via 9to5Mac that Apple has cut back on production of the iPhone 16 by three million units. These cuts reportedly affected a key semiconductor supplier for iPhone orders in the December quarter, based on recent supply chain checks.

More About the iPhone 16 Pro Max Product Costs

In the US, the iPhone 16 Pro Max starts at $1,199 (around ₹1,00,700) and in India, it costs ₹1,44,900 making this the most expensive model underway. For the iPhone 16 Pro Max variant with 256GB storage, it is said to be $485 (₹40,800) compared to $453 (₹38,100) on the iPhone 15 Pro Max according to investment firm TD Cowen.

The iPhone 16 Pro Max will get an A18 Pro chipset, a bigger battery, and a larger display plus a camera control button as notable improvements. The additional extras have bumped up production costs. Display and rear camera systems are the biggest cost drivers. The most expensive item in the BOM for the iQOO is its display along with the rear camera system, each costing $80 (approximately ₹6,700) a piece. Together they represent 16% of the total BOM according to a report.

In comparison, the same parts for the iPhone 15 Pro Max were priced at $75 (around ₹6,300) and $70 (around ₹5,900), respectively. The new LPDDR5X RAM costs $17 (around ₹1,500), up from $12 (around ₹1,000) for its predecessor. The A18 Pro chipset is priced at $45 (around ₹3,800), while the internal storage costs $25 (around ₹2,100), both higher than those of the iPhone 15 Pro Max. The new camera control button adds $19 (around ₹1,600) to the cost, just $3 (around ₹250) more than the previous Action Button.

Barclays also highlights that iPhone 16 orders have been reduced, with “sell-through checks” indicating a 15% year-on-year decline at launch. They estimate 51 million units shipped for the September quarter. Additionally, while the iPhone 16 had two extra selling days compared to the iPhone 15 (11 days vs. 9), concerns about demand persist. Barclays attributes these issues to the “staggered rollout of Apple Intelligence,” limited AI adoption outside the US, and a lack of significant hardware upgrades.

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