How Much Does it Cost To Make An iPhone? (Explained)

How Much Does it Cost To Make An iPhone? (Explained)

The cost of an iPhone is not constant, and it varies with the phone model. 

Apple (AAPL) is one of the most well-known firms in the world, and its iPhones are among the most widely used.

Apple has one of the most sought-after goods in the world, and as of the end of 2021, Apple was the global leader in smartphone market share, frequently swapping places with Samsung for the top spot.

As of the fourth quarter of 2021, Apple has 22 percent of the worldwide smartphone market share, Samsung has 19 percent, and Xiaomi has 12 percent.

Apple is also the market leader in terms of smartphone profitability. In Q2 2021, the corporation grabbed 75% of the earnings and 40% of the sales from the industry.

Apple’s huge revenues come from a significant markup on its phones.

  • Apple’s iPhone leads all smartphone manufacturers in market share, followed by Samsung.
  • Apple not only has the biggest market share, but it also has the highest operational profit margins of any smartphone maker.
  • Apple puts a significant markup on their smartphone in order to reap such huge revenues.
  • The iPhone 13 Pro is priced between $999 to $1,449 in retail, although it only costs $570 to produce.

How much Does an iPhone 13 Pro cost?

The iPhone 13 is Apple’s newest phone, and it, like previous models, comes in a variety of configurations.

The iPhone 13 pro costs between $999 and $1,449, depending on storage space. It’s a pricey price tag, especially considering the real cost of all the components to manufacture the phone is believed to be around $570.

Costs of Labor

Taiwanese firms, like as Foxconn, assemble the iPhone principally in China. The average hourly wage for an iPhone worker is $10. The wealthiest 1% earn around $27 per hour, while the bottom 5% earn around $12 per hour.

The reason for building in China, according to Apple CEO Tim Cook, is not because of reduced labour costs. If this were the case, Apple would be able to produce its phones in even more cost-effective regions.

According to Cook, the key issue is the level of competence necessary in tooling engineering. He believes that the precise skill set is no longer available in the United States, but that it is widespread in China.

Furthermore, logistically, China is the best place to send a product throughout the world because it is home to seven of the world’s top ten ports.

If Apple built the iPhone in the United States, it would only be able to produce a tiny number of units each year at a much higher cost.

With a market valuation of $2.8 trillion in March 2022, Apple is the world’s most valuable firm.


This video here shows more about the cost of the iPhone. 

Working Conditions

There were rumors of poor working conditions in the early days of iPhone manufacture, although this appears to have improved with time.

According to some Foxconn employees, working conditions are comparable to, if not better than, those in other Chinese factories. 

Outside of China’s major cities, the majority of the nation remains undeveloped, with low living costs, resulting in incomes that may look low when compared to Western civilization.

The issue, therefore, is not so much the salaries as it is the working circumstances that people must undergo in order to earn those earnings.

How Much Does an iPhone Cost to Produce?

Apple’s newest iPhone, the iPhone 13 Pro, costs $570 to produce.

The screen, phone case, camera, battery, software, semiconductors, and other components go into making a phone. On its phones, Apple adds a significant markup.. 3.

Apple’s Annual Revenue: How Much Does It Earn?

Apple’s revenue in 2021 was $365.8 billion. Its sales were $274.3 billion in 2020, up 33.3 percent from the previous year.

iPhone Vs.Samsung Galaxy S phone: How much does it cost to produce

We estimate the Samsung Galaxy S21 to cost $508 to produce. It costs around $1,049 at retail. 


Apple is a highly successful firm, and we, as customers, pay a premium for the items it produces.

Some consumers buy Apple products to be associated with the ‘trendy’ Apple brand, and Apple will continue to produce its phones in China and other low-cost places in order to retain its high profits and cheap production costs.

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