6 days Ago By Priya Singh
The cost of manufacturing Apple’s iPhones is back in the spotlight amid political pressure from the US to shift production out of China. While China has long been Apple’s primary manufacturing hub, the company is now increasingly diversifying its supply chain—especially to India, which could potentially produce up to 30 million units annually. How tariffs could change the cost of the iPhone 😳 iPhone 16 Pro components previously cost Apple $549.
73, but could now increase to $846.59. Would you be willing to pay $300 more for a new iPhone? (via @JoannaStern ) pic.
twitter.com/X149YuyZME — AppleTrack (@appltrack) April 5, 2025 According to Bloomberg, Apple is working to reduce its dependence on China following the disruptions during COVID-19. Amid this shift, attention is also turning to the actual cost of producing the latest iPhone 16 Pro Max, revealing which components drive up expenses the most for the Cupertino tech giant.
According to research by TD Cowen, Apple spends approximately $485 (around ₹40,500) to manufacture the 256GB variant of the iPhone 16 Pro Max. This figure includes the cost of all internal components, the box, and the assembly process. In comparison, the iPhone 15 Pro Max cost Apple $453 (around ₹37,800) to build, making the new model $32 (about ₹2,700) more expensive to produce.
Interestingly, despite the increase in production cost, Apple continues to sell the iPhone 16 Pro Max at the same retail price of $1,199 (approx. ₹99,900) as last year’s model. ALSO SEE: Tim Cook Reveals Why iPhones Are Made in China—And It's Not Cheap Labour The most expensive parts of the iPhone 16 Pro Max are the 6.
9-inch Super Retina XDR display and the advanced rear camera system, each costing $80 (roughly ₹6,700) and making up 16% of the total build cost. The camera system includes a 48MP primary sensor, a 48MP ultra-wide lens, and a 12MP telephoto shooter. Other major costs include the A18 chip at $45 (around ₹3,800), accounting for 9% of the cost, and the 5G modem at $28 (about ₹2,300), making up 6%.
Despite its high-end components, Apple’s pricing strategy remains unchanged, absorbing the added costs to maintain consistency in market pricing. iPHONE 16 PRO PRODUCTION COSTS SOAR New tariffs are making it way more expensive for Apple to build the iPhone 16 Pro. Right now, making 1 iPhone costs about $580—but with new tariffs, that could jump to $850.
That’s a $270 jump—nearly 50% more per phone. The costs include..
. https://t.co/kqO79FjRDo pic.
twitter.com/7LDa37euQD — Mario Nawfal (@MarioNawfal) April 5, 2025 Apple’s manufacturing cost for the standard iPhone 16 is projected to be $416 (approximately ₹34,800), up by $21 (around ₹1,750) compared to the iPhone 15. As with the iPhone 16 Pro Max, the display remains the most expensive component at $65 (about ₹5,400).
The A18 chip and 5G modem are priced the same as in the Pro Max—$45 and $28 respectively—but represent a higher share of the total cost at 16% and 11%, indicating the relatively leaner component budget of the base model..
