The cost to make an iPhone is around $423, significantly less than its retail price range of $799 to $999.
Apple holds 22% of the global market share and captures 75% of the smartphone industry’s profits.
Average worker salary at iPhone factories in China is $10/hour, contributing to controlled manufacturing costs.
China’s specialized skills in tooling engineering and logistical advantages make it the prime location for iPhone production.
The iPhone 15 marks a first as it’s made in India for global markets at launch, showcasing India’s growing manufacturing capabilities.
Custom-designed components are key to the iPhone’s high performance, affecting the overall manufacturing cost.
The iPhone 15 Pro Max manufacturing cost is $558, more than the Samsung Galaxy S23 Ultra’s $469.
Apple’s strategic pricing leads to substantial profit margins, estimated between 38% to 50% for the iPhone 14 Pro.