It Costs Apple Only Rs 35,000 In Parts Of iPhone 11 Pro Max Which Sells At Rs 1.09 Lakh

When the iPhone 11 series launched early last month, Apple fans were pleased to see that it was actually cheaper than the previous models' launch prices. At Rs 64,900, you can get the cheapest iPhone 11 model. But how much does it cost Apple to make it?

According to recent news, not nearly as much.

TechInsights recently completed a teardown of the iPhone 11 Pro Max, which costs $1099 in the US, but works out to more for use here at Rs 1,09,900. They disassembled the newest flagship phone from Apple, identified each of the components it had, and then estimated their individual costs.

The most expensive component in the iPhone 11 Pro Max is the triple lens camera, which would work out to about $73.50. In close second is the touchscreen AMOLED display at $66.50, with the A13 processor working out to about $64 to manufacture. According to TechInsights, it should cost Apple about $21 to assemble these components, whether by Foxconn in China or here in India.

And that brings the total cost of manufacturing the iPhone 11 Pro Max to $490.50.

That works out to about 45 percent of the total price Apple charges for the phone in the US. and taking into account conversions for India, that's about Rs 34,800, or about 31 percent of the total price for us here.

That seems like an insane profit, but there are other factors to consider of course. The remaining $608.50 from each device does have to go towards Apple employee salaries, advertising and more. And you also have to take into account how much research and development comes to before you can even sell a device. There's also the development of iOS and its related software that isn't included in a bill of materials.

TechInsights

It's in fact pretty close to what TechInsights had also discovered was the margin for Samsung. While the Galaxy S10+ was priced at launch at $999, they discovered the basic cost to manufacture it would have been about $420.

So maybe you shouldn't feel too bad about all the money leaving your pocket. Not all of it is going into Apple's coffers, though a lot of it obviously is. But hey, if you hated spending money, you wouldn't have bought an iPhone anyway right?