Apple Spends the Most on This iPhone Part: Can You Guess What?

The cost of producing Apple’s iPhones is once again a topic of debate, as US President Donald Trump seeks to use “reciprocal tariffs” to move the majority of product manufacture domestically. Apple has historically produced its iPhones in China, but since COVID-19 ended, the company has been working to lessen its dependency on the nation and has increasingly looked to India as a counterbalance, where it can also produce about 30 million units annually.

Did you, however, know the precise cost of manufacturing Apple’s most recent and finest iPhone 16 Pro Max, as well as which component the Cupertino-based tech giant finds most costly to source? This is a thorough analysis of the price of building an iPhone 16 Pro Max.

Making Cost of the iPhone 16 Pro Max:

A 256GB model of the iPhone 16 Pro Max costs about $485 to produce, including the price of the packaging, the components, and even the assembly process, according to a study done last year by research company TD Cowen. In contrast, the iPhone 15 Pro Max costs $453 to build, which is $32 less than the latest model.

Apple charges $1,199 for the iPhone 16 Pro Max, the same price as the Pro model from the previous year, despite the increased production expenses. The 6.9-inch Super Retina XDR display and the back camera setup are tied for the most expensive part, each costing $80, or around 16% of the total price. The iPhone 16 Pro Max has a 12-megapixel telephoto lens, a 48-megapixel primary camera, and a 48-megapixel ultra-wide-angle lens.

The A18 CPU, which costs $45 or almost 9% of the price of the iPhone 16 Pro Max, and the 5G modem, which costs $28 or roughly 6% of the price, are the other pricey parts.

Also Read: Apple Builds $22B worth iPhones in India in a Year

How about the iPhone 16?

Additionally, it was estimated that Apple’s manufacturing expenses for the iPhone 16 would increase to $416, which is $21 more than the estimated expenditures for the iPhone 15. As with the 16 Pro Max, the display remained Apple’s most costly part, coming in at $65. In contrast, the A18 chip and 5G modem were 16% and 11% of the total product price, respectively, although they cost the same $45 and $28 as the 16 Pro Max.