The price of the iPhone 16 Pro in India is 1,44,900 rupees, while its production cost is only 41,000 rupees.

The recent iPhone 16 series from Apple has generated significant excitement since its launch last month. Tech enthusiasts are thoroughly exploring every feature and update, leading to online discussions and debates. A recent report has revealed that the production cost of the iPhone 16 Pro Max is approximately $485 (around ₹41,000). In contrast, the retail price in India reaches a staggering ₹1,44,900, highlighting the significant profit margins Apple enjoys.

According to an analysis by the market research firm TD Cowen, the bill of materials (BOM) for the iPhone 16 Pro Max stands at $485, representing a slight increase from the $453 BOM (approximately ₹38,700) of the previous iPhone 15 Pro Max. While the retail price has increased considerably, the cost of materials to manufacture the phone remains relatively low. It is important to note that the BOM only accounts for the costs of materials and assembly; other expenses such as software development, marketing, and logistics also need to be considered in the final price that consumers see in the market.

The increase in BOM for the iPhone 16 Pro Max is primarily due to various hardware upgrades. The most expensive components are the display and the rear camera system, each priced at approximately ₹6,700, an increase from ₹6,300 and ₹5,900 for the iPhone 15 Pro Max. Additionally, the new LPDDR5X RAM technology raises costs, priced at ₹1,400 compared to the previous LPDDR5 at ₹1,000. The A18 Pro chip and storage also come with higher price tags, reaching ₹3,400 and ₹1,900, respectively.

Despite these rising production costs, Apple continues to enjoy an impressive gross margin of around 70%. This high margin remains even after considering various expenses, including logistics and software development. An interesting addition in this model is the new Camera Control button, which adds a minimal cost of ₹1,600, just ₹250 more than the Action button of the previous model.

Recently, it has been reported that the assembly of the iPhone 16 Pro and Pro Max models has begun in India, and it is expected that the locally manufactured versions will soon be available in the domestic market and exported to international markets. Additionally, IDC anticipates a 25% growth for iPhones in India.

As Apple continues to innovate and improve its product line, the issue of pricing continues to provoke conversations among both consumers and analysts. The iPhone 16 Pro Max is a prime example of how high-quality components and cutting-edge technology can generate significant profit margins, allowing Apple to thrive in a competitive market while attracting a loyal customer base. The iPhone 16 series not only showcases Apple's commitment to excellence but also highlights the business acumen that positions the brand as a leader in the tech industry.