The prices of modern flagship class phones currently exceed one thousand euros or dollars, so it is interesting to know how much the production of a particular phone model might cost. This information should be taken very subjectively, but the materials of the new iPhone 14 Pro Max could cost approximately 464 dollars.
Of course, Apple does not release official information on how much it costs to produce one iPhone or what the markup is, because it is very important and private business information. Instead, the company publishes annual product gross profit, which was 37% in the first quarter of 2023. This profit percentage has historically been very stable for Apple products, and gives you a rough idea of how much the company makes from each device sold.
According to analysts, the largest iPhone 14 Pro Max model is 3.4% more expensive than the previous generation iPhone 13 Pro Max. The main price increase is related to the new 48MP camera sensor and always-on screen mode. The prices of some components related to the provision of communications have decreased due to the growing popularity and availability of 5G technologies.
The price of Apple’s A16 Bionic is one-fifth of the total cost of parts, and so is the screen. The total cost of the camera is 11%, but most of it is various other components at 36%. This roughly $464 is just the cost of materials, not counting the investment in research, marketing, and sales. Although the production costs of the iPhone have increased, its price has remained unchanged in the US market, where the largest iPhone 14 Pro Max model costs from $1,099.
