The iPhone 16 Pro Max is Apple’s most expensive smartphone. It is sold in India for Rs 1.32 lakh for the 256 GB model. But do you know how much it costs Apple to make this phone? You may be shocked to know that the cost to build this phone is less than half its selling price.
How Much Does It Cost to Make iPhone 16 Pro Max?
According to a report by research firm TD Cowen, the bill of materials (BOM) for the iPhone 16 Pro Max is 485 US dollars, which is about Rs 42,000 in Indian currency. This cost includes all the raw materials and the cost of assembling the phone.
In comparison, the previous model, iPhone 15 Pro Max, had a BOM of 453 dollars (around Rs 39,200). So, the cost to make the new model has increased slightly, but the selling price is still much higher.
What is Included in the BOM?
The BOM includes:
- Display
- Camera system
- RAM
- Processor
- Storage
- Battery
- Materials used in the body
- Assembly costs
But the BOM does not include costs like:
- Software development
- Marketing and advertising
- Shipping and logistics
- Salaries and company operations
These extra costs are the reason the final price becomes so high for the customer.
Why Does Apple Charge So Much?
Though the phone is made for Rs 42,000, Apple sells it at Rs 1,32,900. That’s more than three times the cost. This happens because Apple invests heavily in:
- Software updates and security
- Advertising across the world
- Research and development
- Maintaining Apple Stores and services
Even after all these costs, Apple earns huge profit from each phone. This profit is called gross margin. Apple is known for having one of the highest profit margins in the tech world.
Which Parts Are Most Expensive?
According to the report:
- The display and rear camera are the most expensive parts. Their cost is about Rs 6,700.
- In iPhone 15 Pro Max, these parts cost Rs 6,300 and Rs 5,900.
- The new LPDDR5X RAM in iPhone 16 Pro Max costs Rs 1,400, compared to Rs 1,000 in the older phone.
- The A18 Pro chip costs Rs 3,400.
- The storage chip costs Rs 1,900.
Read More: Samsung to Launch Galaxy M36 5G in India on 27 June
These parts have better technology, so they raise the manufacturing cost slightly. Still, Apple’s selling price is much higher than total production cost.
Final Words
Apple makes premium smartphones that offer high quality and performance. But the difference between making cost and market price is large. This shows how Apple earns big profits while offering advanced features to users.
Disclaimer: This article is based on market research reports and public information as of 21 June 2025. Actual prices, costs, and details may vary with time and source. Always check with the official Apple website or retail store before buying.
