As noted by the Proactive, an investors site, analysts at Bank of America have repeated their “buy” rating for Apple as a third party analysis has confirmed their belief that the iPhone maker’s gross margins continue to move higher.
“Gross margins for Apple have been trending higher for the last several years and while Services mix has been a driver, the margins in iPhones have also been resilient despite the inclusion of increased features/functionality,” they wrote in a note to clients.
Based on a third party analysis, the analysts estimate the total cost to manufacture the iPhone 16 Pro Max is 5% less than the iPhone 15 Pro Max which adds 320 basis points to the iPhone 16 Pro Max gross margins relative to the iPhone 15 Pro Max.
However, there is less improvement in costs for the non-Pro models.
“Our analysis of the teardowns of iPhone 16 Pro Max and comparison versus 15 Pro Max suggests that Apple has been very focused on driving lower costs across the Pro lines where the mix of the iPhones is steadily increasing,” they wrote, according to Proactive.
