How much does it cost to make an iPhone? Short ans: Apple lists the iPhone 17 Pro Max starting at $1,199 (U.S. MSRP). Industry teardowns and BOM estimates put the parts + assembly cost somewhere around ~$400–$560 depending on which report you trust and which storage/RAM variant is analyzed, so the simple retail minus parts gross margin is large — but that doesn’t include R&D, marketing, software services, logistics, warranties, taxes or retailer/carrier cuts. (Apple’s published product page and official launch notes: Apple newsroom/specs.)

1) System-on-Chip (SoC / Processor) — A19 Pro

Who makes it / where from: Historically, Samsung Display, LG Display, and BOE have produced iPhone OLEDs for Apple; these names are frequently mentioned in industry reports and Apple’s supplier lists. Additionally, Apple works closely with suppliers and specifies display modules to exact tolerances. Apple
Role: CPU, GPU, Neural Engine — the single most important silicon block for performance and power.
Estimated cost (industry teardown): According to teardown reports, the A-series component of recent Pro chips costs between $80 and $130 per unit, depending on the model and yield assumptions. Recent BOM summaries for the A19 Pro used in the iPhone 17 Pro Max indicate a figure close to the lower-to-middle of that band, according to analysts.

2) Display (OLED / ProMotion)

Who makes it: Apple sources OLED panels from multiple suppliers — historically Samsung Display, LG Display, and BOE have manufactured iPhone OLEDs for Apple (Apple’s supplier lists and industry reporting show these names recurrently). Apple also specifies display modules to precise tolerances and works closely with the suppliers.
Role: Main visual experience — size, brightness, refresh rate (ProMotion) and color accuracy are major differentiators.
Estimated cost: modern iPhone Pro displays are among the most expensive single components — teardown estimates commonly place the Pro display in the $70–$120 range for premium Pro panels depending on size, peak brightness and LTPO/refresh hardware.

3) Camera modules and image sensors

Who makes it: Apple designs camera systems and partners for optics and sensors. Sony remains the dominant supplier of high-end image sensors used by Apple; optical modules and lenses may come from multiple contract partners in Japan, Korea and China (e.g., Largan, Alps, Sunny Optical historically), while assembly and tuning often involve other specialist suppliers. Industry analysis and teardown writeups highlight Sony image sensors in the 2025 models. library.techinsights.com
Role: Triple 48MP “Fusion” camera system on the Pro line gives computational photography data; Pro Max often has the largest telephoto/zoom hardware.
Estimated cost: the camera subsystem (sensors + lenses + module) for Pro Max is a significant line item — teardown estimates range roughly $50–$100+ depending on whether advanced periscope or multi-element telephoto modules are included. Recent iPhone 17 Pro Max analyses cite camera totals approaching the higher end of that range.

4) Memory & Storage (RAM + NAND)

Who makes it: Suppliers include Samsung, SK Hynix, Micron (and others). Apple sources LPDDR5X RAM and NVMe storage modules from multiple vendors to diversify supply. FindArticles
Role: RAM (12GB on Pro models in 2025) and flash storage (starting 256GB) affect cost and performance.
Estimated cost: combined RAM + NAND typically runs $20–$50 depending on capacity; higher storage variants (1TB, 2TB) add significantly to BOM.

5) 5G Modem / RF components / Wireless

Who makes it: Apple has moved to integrate more radios in its own silicon, but still sources RF front-end modules and modem-related components from specialist suppliers (Qorvo, Broadcom, Murata, Skyworks and others for modules and RF filters). In 2020s Apple also integrated modem functions closely with its SoC strategy while still relying on partner components.
Estimated cost: RF + modem related hardware can be $20–$100 depending on how much of the modem is discrete vs integrated — some teardown reports assign a non-trivial share of the BOM to cellular modems and RF systems.

6) Battery, power management & charging (USB-C)

Who makes it: Batteries are commonly supplied by firms such as Amperex Technology Limited (ATL), Sunwoda, Desay and similar battery makers; power management ICs come from Broadcom, Texas Instruments, or custom Apple-spec controllers. Assembly and battery pack integration are handled by contract manufacturers.
Estimated cost: battery pack often runs $4–$20 in BOM estimates depending on size/capacity and packaging; charging/control hardware adds some amount.

7) Enclosure, casing, glass, materials (aluminum unibody / Ceramic Shield)

Who makes it: Apple works with aluminum/metal suppliers and finish shops; case stamping and finishing performed by contract manufacturers in China/India. For the 2025 iPhone 17 models Apple shifted materials/design (aluminum unibody with Ceramic Shield pane) — Apple also lists case and enclosure suppliers in its supplier list. Tata Electronics, Foxconn, Luxshare and others appear in supplier/manufacturing roles in 2025 reporting as Apple broadens manufacturing footprint to India as well as China.
Estimated cost: enclosure + finish typically $15–$35 depending on material and finishes.

8) Assembly / Final manufacturing

Who does the assembly: Main contract assemblers are Foxconn (Hon Hai), Pegatron, Luxshare-ICT, Wistron, and — increasingly for recent iPhones — Tata Electronics and other regional partners in India as Apple diversifies assembly beyond China. These partners do final assembly, testing and packaging. Apple’s supplier list identifies major contract manufacturers and direct suppliers.
Assembly cost: assembly labour + test + packaging may add $5–$15 per unit in BOM accounting (varies by location and labor cost assumptions).

9) Other components (sensors, speakers, connectors, software/IP)

Who makes them: Broadcom, Cirrus Logic, Bosch/Invensense (sensors), Knowles (audio), and many smaller suppliers for screws, adhesives, antennas, microphones and connectors. Apple’s supplier list names hundreds of suppliers responsible for these pieces.

Estimated parts & assembly cost table (industry teardown range — iPhone 17 Pro Max, 256GB example)

These are industry estimates from teardowns and BOM analyses (public writeups and teardown summaries). Exact numbers vary by analyst and version (storage, RAM). Sources: teardown summaries, iFixit, TechInsights/Counterpoint snippets and public reporting.

Component	Typical teardown estimate (USD)
SoC (A19 Pro)	$80 – $130
Display (6.9″ Pro OLED)	$70 – $120
Camera subsystem (triple 48MP + telephoto)	$50 – $100
Memory + Storage (256GB + 12GB RAM)	$20 – $50
5G modem / RF components	$20 – $90
Battery & power components	$4 – $20
Enclosure, glass, finish	$15 – $35
Assembly, testing, packaging	$5 – $15
Misc (sensors, connectors, speakers)	$10 – $30
Total ESTIMATED BOM + assembly	~$400 – $560

A number often cited in popular summaries for the iPhone 17 Pro Max parts is roughly ~$408 (one public teardown roundup) — other expert analyses put some Pro Max BOMs higher, depending on how they allocate modem, packaging and advanced camera costs. Use a $400–$560 range as a realistic industry band.

Retail price vs. “profit” (simple calculation + real meaning)

U.S. MSRP (base 256GB iPhone 17 Pro Max): $1,199 (Apple product page / launch coverage)
If BOM + assembly = $400–$560, then simple gross difference (retail − BOM) = $639 – $799.

That raw difference looks like “profit” but it is not net profit. Apple must cover (from that difference):

R&D (chip design, hardware engineering, iOS, services)
Software engineering and maintenance
Marketing, retail stores, packaging design, and advertising
Distribution, logistics, carriers and subsidies (where applicable)
Warranties, returns, repairs, and customer support
Corporate overhead, taxes, and other operating expenses
Channel margins (retailers, carriers) in markets where Apple doesn’t sell direct

Analysts often treat the retail minus BOM as gross margin on hardware, but accurate per-unit net profit (what remains after all expenses and taxes) is considerably lower. Still, historically Apple’s gross margin on iPhones has been high compared with other phone makers — Apple’s overall gross margin (company level across products & services) is public in financial reports, but Apple does not publish per-unit profit.

Who makes what — quick supplier map (high-level)

SoC (A19 Pro) — Designed by Apple, manufactured by TSMC. Wikipedia
Image sensors — Sony is the primary high-end supplier; optics/modules from Japanese/Taiwan/Chinese optics firms. library.techinsights.com
Displays — Samsung Display, LG Display and BOE have been core suppliers for Apple OLED panels.
Memory / NAND — Samsung, SK Hynix, Micron (multiple sources to diversify supply). FindArticles
Batteries — ATL, Sunwoda, Desay and others.
Assembly — Foxconn (Hon Hai), Pegatron, Luxshare, Wistron — and newer partners like Tata Electronics in India for recent models.
RF / audio / sensors — Broadcom, Qorvo, Cirrus Logic, Knowles, Bosch/Invensense, Murata, Skyworks etc.

(Apple’s official supplier list publishes hundreds of named suppliers and which factories/locations they operate; it’s a good reference for exact vendor names across fiscal years.)

A plain summary

Apple sells the iPhone 17 Pro Max starting at $1,199 (US).
Industry teardowns estimate the parts + assembly cost at roughly $400–$560 for a typical Pro Max variant (the range reflects different analyst assumptions). Supercar Blondie
Apple’s per-unit gross difference (retail price minus parts) therefore often looks like $640–$800 — but that is not the real net profit, because Apple must pay for R&D, software, marketing, distribution, warranties and taxes out of that difference.

Caveats and why estimates vary

Analysts differ: teardown methodologies and what they include (e.g., how modem IP is costed, packaging, test equipment) change BOM totals. Some firms reserve deeper data behind paywalls. Counterpoint
Variant differences: higher storage (1TB/2TB) increases NAND cost a lot; different RAM configs change BOM.
Supply deals & volume pricing: Apple’s huge volumes let it get better pricing than smaller buyers; teardown estimates are educated guesses.
Hidden costs: non