How much does it cost to manufacture an iPhone?

“An iPhone generates approximately $650 in revenue for Apple,” Horace Deidu reports for Asymco. “This figure has remained fairly steady over time. Using deduction from overall margins, it’s possible to estimate the gross margin on the product to be around 55%.”

Deidu reports, “That means that the cost of goods sold (COGS) for the iPhone is about $293.”

“Manufacturing costs for the iPhone are likely to be much higher than comparable devices,” Deidu reports. “This is partly because of the design of the product and partly because of the quality testing needed.”

Much more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]


  1. Considering Apple is, also, footing the bill for all of these cloners’ research and development, hardware and software designers as well the creativity (priceless), I would think Apple is putting much, much, more into the iPhone than merely the cost of parts. Idiot writers.

  2. It is clear that none of the posters here have a clue what the article is about.

    For anyone looking for an intelligent discussion about the article, go read the whole thing and the discussion on the same page.

    Very interesting reading.

  3. There is a very simple way to calculate the fair selling price of anything that is sold.

    If you are selling it the price is way too high. If I am selling it the price is just right or maybe a little too low.

    irony alert is now shut off. resume what you were doing

  4. “In order to know exactly how much Apple should be on the hook for to correct all the factory labor issues in China, it’s important that we come to a rough estimate of how gaudily huge Apple’s margins on the iPhone are.”

  5. The above responses are all from asshats.

    If they were familiar with Horace Deidu and his site, they would know that Horace is a major friend of AAPL stockholders.

    Production costs ARE a valid concern to those who follow AAPL.

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