Apple saved money making its new iPhone 16e by using many parts it created instead of buying from other companies. The C1 5G modem helps Apple save $10 per phone compared to using Qualcomm chips. This modem works 40 percent better in some tests against the Snapdragon X71 found in regular iPhone 16 models. The C1 chip comes from TSMC's 4nm process for better power use.
Apple made about 40 percent of the parts inside the iPhone 16e themselves. The rest came from outside suppliers. They cut some features like extra cameras and MagSafe charging. At $599 for the base model, it's hardly cheap but costs less than flagship iPhones. If Apple sells its expected 22 million units, it'll save around $220 million just from the modem change.
This explains why Apple wants to make more of its components in-house going forward. They plan to release their first custom Wi-Fi 7 chip later this year for the iPhone 17 series. Creating their parts gives Apple better control over hardware and reduces costs. These savings add up quickly when selling millions of devices each year.
Apple made about 40 percent of the parts inside the iPhone 16e themselves. The rest came from outside suppliers. They cut some features like extra cameras and MagSafe charging. At $599 for the base model, it's hardly cheap but costs less than flagship iPhones. If Apple sells its expected 22 million units, it'll save around $220 million just from the modem change.
This explains why Apple wants to make more of its components in-house going forward. They plan to release their first custom Wi-Fi 7 chip later this year for the iPhone 17 series. Creating their parts gives Apple better control over hardware and reduces costs. These savings add up quickly when selling millions of devices each year.
