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iPhone 14 teardown reveals parts 20% costlier than previous model

Profit margins likely lower as Apple eats most of production price rise

Nikkei had a close look at the iPhone 14, finding it rich in advanced hardware but lacking in new functions. (Photo by Kosuke Imamura)

TOKYO -- A Nikkei teardown of Apple's flagship models in the iPhone 14 series revealed that production costs have soared about 20% from its previous model to an all-time high. Short on new functions, the iPhone 14 still reflects Apple's strategy of showcasing ultrahigh-performance devices such as proprietary 4-nanometer chips and new camera components.

The company has not raised prices for its latest model in the U.S. and some other markets, but higher production costs mean that the company's profit margin has likely shrunk.

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