The estimated cost for Apple to manufacture an iPhone in 2025 is roughly around $450 per unit. This includes key components such as the screen (~$70), battery (~$12), camera (~$50), the A18 chip (~$80), and other internal parts (~$150), plus labor and assembly costs
. More detailed breakdowns from Q1 2024 show that component costs dominate, totaling about $31.6 billion out of $42.2 billion in total cost of goods sold (COGS) for iPhones, with assembly labor costing around $6.3 billion and logistics $4.2 billion
. For a single unit, this aligns with the $400-$500 range for production costs. However, if iPhones were made in the United States instead of China or India, manufacturing costs would rise dramatically. Estimates suggest labor costs alone would increase from about $40 to $200 per phone, and total costs could surge by up to 90%, potentially pushing the retail price to around $3,000 to $3,500 due to higher wages, tariffs on imported components, and supply chain challenges
. Some extreme estimates even suggest a US-made iPhone could cost tens of thousands of dollars, but these are more speculative and highlight the impracticality of full domestic production at present
. In summary:
- Typical manufacturing cost per iPhone (assembled mostly in China/India): approximately $450-$485
- Labor cost in China: about $40 per phone; in the US: about $200 per phone
- US-made iPhone manufacturing cost could increase by up to 90%, raising retail prices to $3,000-$3,500 or more
This cost excludes other expenses like R&D, marketing, and profit margins, which explain why retail prices exceed production costs significantly.
