How Much Does It Cost To Make An iPhone?
16 Year Anniversary Of The iPhone
iPhone Bill Of Material Costs Vs Retail Pricing
The 9th of January 2024 is the anniversary of Steve Jobs announcing the original iPhone at the Macworld convention (2007). Considering the retail price of the iPhone continues to rise, in 2019 the iPhone accounted for an average of 53.89% of Apple’s revenue. BankMyCell decided to create this visualization showing both the evolution and value comparisons of the iPhone’s technology, BOM costs, and retail pricing. Using teardown estimates from HIS Markit’s benchmarking services, we can see how much each iPhone cost to make over the last 13 years.
If you have an old iPhone you want to trade-in or do simply price check to see how much it’s worth, we also offer an iPhone buyback comparison service in the US, you can see live prices right here.
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Learn about our editorial process
Learn about our editorial process
How Much Did Your iPhone Cost To Make?
Average iPhone Manufacture Cost (2007-2020)
We cover all the Tech Insights and IHS / S&P Global bill of materials per device below in both text and graphic formats, here are the average costs of building an iPhone:
- Estimated iPhone material costs ranged from $156.2 to $450.50 (model dependant)
- Retail prices of these entry-level iPhones ranged from $399 to $1099 (2007-2020)
- The difference between material cost and the retail price ranged from 27.6% to 44.63%
- Projected markup ranged between 124.06% to 260.17%
Apple axed some profits in 2019 models: The iPhone with the most expensive estimated materials cost is the iPhone 11 Pro Max 64GB at $450.50, which is 35.49% of its retail cost of $1099. The iPhone with the highest estimated materials cost in proportion to the original RRP was also the iPhone 11 Pro Max 64GB at $450.50 material cost, which is 44.63% of its retail cost $1,099. So, this data shows that the 11 Pro Max had the least % margin since the original iPhone according to bill of material data.
When the second model was released, the iPhone 3G, the estimated bill of materials was $51 less than the original, and the phone retailed for $100 more which doubled Apple’s markup. This was, in fact, the lowest percentage of the retail price at 27.76%, later on, the iPhone SE was the only device to be released that was actually cheaper material-wise at $156.2.
The costs are representative of parts and do not account for research and development, logistics, marketing, and other general business costs. Additionally, the iPhones cost of manufacturing $3.80-$8.00 per device was not included as it was not available for all devices. Sources: Statista, S&P Global, GSMArena
How Much Does It Cost To Make An iPhone?
BankMyCell put together this infographic from public information from companies like TechInsights, they perform teardown analysis to estimate the cost of the individual components of popular cell phones.
It’s the assumption that as the retail price of the iPhone increase, so would the profits of the company, however, this isn’t the case as you’ll see from the sortable data table below. Screens have got larger and technology like OLED displays are more expensive, there are better cameras, and more sensors like fingerprint ID/face recognition.
*It’s important to mention that the figures do not account for other costs such as Apple’s employee salaries, research and development, marketing, logistics, and general business/manufacturing costs.
| # | iPhone | Material Cost ($) | % Value | Retail Price ($) | SIZE | Markup |
|---|---|---|---|---|---|---|
| 1 | iPhone | 217.73 | 43.63% | 499 | 4GB | 129.18% |
| 2 | iPhone 3G | 166.31 | 27.76% | 599 | 8GB | 260.17% |
| 3 | iPhone 3GS | 178.96 | 29.88% | 599 | 8GB | 234.71% |
| 4 | iPhone 4 | 187.51 | 31.30% | 599 | 8GB | 219.45% |
| 5 | iPhone 4S | 188 | 28.97% | 649 | 8GB | 245.21% |
| 6 | iPhone 5 | 199 | 30.66% | 649 | 16GB | 226.13% |
| 8 | iPhone 5C | 166.45 | 30.32% | 549 | 8GB | 229.83% |
| 7 | iPhone 5S | 190.7 | 29.38% | 649 | 16GB | 240.33% |
| 9 | iPhone 6 | 196.1 | 30.22% | 649 | 16GB | 230.95% |
| 10 | iPhone 6 Plus | 211.1 | 28.18% | 749 | 16GB | 254.81% |
| 11 | iPhone 6S | 211.5 | 32.59% | 649 | 16GB | 206.86% |
| 12 | iPhone 6S Plus | 231.5 | 30.91% | 749 | 16GB | 223.54% |
| 13 | iPhone SE | 156.2 | 39.15% | 399 | 16GB | 155.44% |
| 14 | iPhone 7 | 219.8 | 33.87% | 649 | 32GB | 195.27% |
| 15 | iPhone 7 Plus | 270.88 | 35.22% | 769 | 32GB | 183.89% |
| 17 | iPhone 8 | 254.87 | 36.46% | 699 | 64GB | 174.26% |
| 18 | iPhone 8 Plus | 288.08 | 36.06% | 799 | 64GB | 177.35% |
| 16 | iPhone X | 370.25 | 37.06% | 999 | 64GB | 169.82% |
| 19 | iPhone XS Max | 390 | 35.49% | 1099 | 64GB | 181.79% |
| 20 | iPhone 11 Pro Max | 450.5 | 44.63% | 1099 | 64GB | 124.06% |
*At the time of this report, the iPhone XS, XR, 11, and 11 Pro bill of materials have not been released publically.
Want to see more on the timeline of iOS and the iPhone? Check out our stunning iPhone evolution guide.
How much does it cost to make an iPhone 11 Pro Max? (2019)
The iPhone 11 Pro Max was released in September 2019 on iOS 13. When analyzing the cost of materials for this model the key components were the triple 12MP cameras at the rear, the 12MP selfie camera, the 6.5” super retina OLED touchscreen, an A13 Bionic Chipset and 4GB RAM. The following sensors also came into the equation, Face ID, compass, gyro, barometer, accelerometer, proximity and Siri (language commands & dictation). Find out the cost of making an iPhone 11 Pro Max below:
- Estimated iPhone 11 Pro Max material costs came in at $450.50
- Retail prices of the iPhone 11 Pro Max 64GB started at $1099
- The difference between material cost and the retail price was 44.63%
- Projected markup excluding business & manufacturing cost was 124.06%
Resale value: See how much the iPhone 11 Pro Max is worth today!
How much does it cost to make an iPhone XS Max? (2018)
The iPhone XS max was released in September 2018 on iOS 12. When looking at the cost of making an iPhone we need to look at some of the key components such as the dual 12-megapixel cameras, 7MP rear camera, 6.5” super AMOLED display, 4GB RAM and the Apple A12 Bionic chip. Sensors include compass, proximity, gyro, accelerometer and Face ID. Find out the cost of making an iPhone XS Max below:
- Estimated iPhone XS Max material costs came in at $390
- Retail prices of the iPhone XS Max 64GB started at $1099
- The difference between material cost and the retail price was 35.49%
- Projected markup excluding business & manufacturing cost was 181.79%
Resale value: See how much the iPhone XS Max is worth today!
How much does it cost to make an iPhone X? (2017)
The iPhone X was released in November 2017 on iOS 11, we need to take into account the following components when looking at material costs. The cost of the iPhone X was made up from a dual 12MP camera, 7MP selfie camera, the Apple A11 Bionic chip, 3GB RAM and a 5.8” super AMOLED screen. Sensor wise, the X was the first with Face ID, it also had a compass, proximity, gyro and an accelerometer. Find out the cost of making an iPhone X below:
- Estimated iPhone X material costs came in at $370.25
- Retail prices of the iPhone X 64GB started at $999
- The difference between material cost and the retail price was 37.06%
- Projected markup excluding business & manufacturing cost was 169.82%
Resale value: See how much the iPhone X is worth today!
How much does it cost to make an iPhone 8? (2017)
The iPhone 8 was released in September 2017 on iOS 11 just before the X was 2 months later. The cost of making the iPhone 8 came from the 4.7” LCD screen, 12-megapixel camera, 7MP selfie camera, 2GB of RAM on the Apple Bionic A11 chipset and a 1821mAh battery. Sensor wise, the 8 had the fingerprint scanner, compass, proximity, gyro, and an accelerometer. Find out the cost of making an iPhone 8 below:
- Estimated iPhone 8 material costs came in at $254.87
- Retail prices of the iPhone 8 64GB started at $699
- The difference between material cost and the retail price was 36.06%
- Projected markup excluding business & manufacturing cost was 174.26%
Resale value: See how much the iPhone 8 is worth today!
How much does it cost to make an iPhone 7? (2016)
The iPhone 7 was released in September 2016 on iOS 10. The cost of making the iPhone 7 came from the 12-megapixel camera, 7MP selfie camera, 4.7” LCD screen, Apple A10 Fusion chipset with 2GB of RAM on the and a 1960mAh battery. Sensor wise, the 7 had the fingerprint scanner, compass, proximity, gyro, and an accelerometer. Find out the cost of making an iPhone 7 below:
- Estimated iPhone 7 material costs came in at $219.80
- Retail prices of the iPhone 7 32GB started at $649
- The difference between material cost and the retail price was 33.87%
- Projected markup excluding business & manufacturing cost was 195.27%
Resale value: See how much the iPhone 7 is worth today!
How much does it cost to make an iPhone SE? (2016)
The iPhone SE hit the stores outside of the normal iPhone release cycle in March 2016 on iOS 9. This was one of the cheaper phones to make as it was essentially the company’s attempt at a budget phone. In terms of the cost of making an iPhone SE, it had a 4.0” LCD touchscreen screen, Apple A9 chip with 2 GB Ram, 1624mAh battery and 12MP rear and 1.2MP selfie camera. Sensor wise, the 7 had the fingerprint scanner, compass, proximity, gyro, and an accelerometer. Find out the cost of making an iPhone SE below:
- Estimated iPhone SE material costs came in at $156.20
- Retail prices of the iPhone SE 16GB started at $399
- The difference between material cost and the retail price was 39.15%
- Projected markup excluding business & manufacturing cost was 155.44%
Resale value: See how much the iPhone SE is worth today!
How much does it cost to make an iPhone 6S? (2015)
Launching on iOS 9 in September 2015, the iPhone 6S bill of materials featured some of the following components: 12MP rear camera, 7MP front camera, 4.7” IPS LCD touchscreen, Apple A9 chipset with 2GB of RAM on the and a 1715mAh battery. Sensor wise, the 6S had the fingerprint scanner, compass, proximity, gyro, and an accelerometer. Find out the cost of making an iPhone 6S below:
- Estimated iPhone 6S material costs came in at $211.50
- Retail prices of the iPhone 6S 16GB started at $649
- The difference between material cost and the retail price was 32.59%
- Projected markup excluding business & manufacturing cost was 155.44%
Resale value: See how much the iPhone 6S is worth today!
How much does it cost to make an iPhone 6? (2014)
In September 2014 the iPhone 6 was released on iOS 8. The component line up that was used to calculate the cost of making an iPhone 6 is as follows: 8MP rear camera, 1.2MP front camera, 47.7” LCD touchscreen, Apple A8 processor with 1GB RAM and a 1810mAh battery. Find out the cost of making an iPhone 6 below:
- Estimated iPhone 6 material costs came in at $196.10
- Retail prices of the iPhone 6 16GB started at $649
- The difference between material cost and the retail price was 30.22%
- Projected markup excluding business & manufacturing cost was 230.95%
Resale value: See how much the iPhone 6 is worth today!
