The cost to make an iPhone varies by model and includes components, assembly, and logistics. For the latest models in 2024-2025:
- The total production cost for an iPhone 16 Pro Max (256GB) is estimated around $485, which includes components, packaging, and assembly
. The bill of materials (BOM) for the base iPhone 16 model is about $416
- Component costs form the largest part, for example, the display and camera modules alone cost about $80 each on the iPhone 16 Pro Max
. Other key components like the A17 Bionic chip cost roughly $120, and the advanced camera system can exceed $100
- Assembly labor costs are relatively low compared to components, estimated between $12.5 and $30 per unit, with labor making up about 2-5% of the total cost
- Logistics and other costs add further expenses; overall, the cost of goods sold (COGS) for iPhones in Q1 2024 was $42.2 billion, with $31.6 billion for components, $6.3 billion for assembly, and $4.2 billion for logistics
- If iPhone production were moved entirely to the U.S., costs could increase dramatically-by 25% due to higher labor costs alone, and up to 90% or more including tariffs and logistical challenges-potentially pushing the manufacturing cost from around $500 to over $1,000 per unit
In summary, the average cost to produce a current iPhone model is roughly $400 to $500, with the premium Pro Max models costing closer to $485 or more. This excludes R&D, marketing, and other overheads, which contribute to the retail price that often exceeds $1,000
