The A16 Bionic chip in the iPhone 14 Pro model costs $110 to manufacture, which is 2.4 times more than the A15 chip in the iPhone 14 model

A Nikkei examination of the Apple iPhone 14 series models revealed that production costs rose around 20 percent over the prior iPhone generation, which is the highest ever recorded. “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 said on Friday.

The A16 Bionic chip that is used in iPhone 14 Pro models costs $110 to make that’s 2.4 times more expensive than the chip A15 found in iPhone 14 models.

A Nikkei examination of the Apple iPhone 14 series models revealed that production costs increased by more than 20 percent over the prior iPhone generation, which is the highest ever recorded.

“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 noted on Friday.

Production of the iPhone 14 Pro Max costs Apple $501, which is over $60 more than iPhone 13 Pro Max.

The cost of production is likely because of the A16 Bionic chips that are used in models like the iPhone 14 Pro models.

Based on the findings parts used in the iPhone 14 primarily come from US suppliers, making up 32.4 percent of the cost.

Apple has increased iPhone prices in a few countries, like Japan and Australia but there was no increase in the US as well as other countries due to exchange rates for foreign currency because they are based on the US currency has been extremely robust this year.

The A16 Bionic chip inside the iPhone 14 Pro and iPhone 14 Pro Max gives users features such as that of the Dynamic Island, which powers the entire battery life, and provides amazing computational capabilities for photography.

With two high-performance CPUs and four cores that are high-efficiency, The new CPU is 40 percent faster than competitors and is able to handle the most demanding workloads.A16 Bionic features an accelerated five-core GPU that has 50 percent greater memory capacity ideal for games that require graphics as well as apps. It also comes with a brand new 16-core Neural Engine that is capable of 17 trillion operations per second as claimed by Apple.

The CPU GPU, Neural Engine along with Image Signal Processor collaborate to support the latest camera hardware and can achieve as much as 4 trillion operations per image.

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