Apple spends the most on this one iPhone component. Hint: It’s not the chip

The cost of manufacturing Apple’s iPhones is once again a hot topic, with US President Donald Trump looking to shift the production of most products to the country via what he calls “reciprocal tariffs”. While Apple has traditionally built its iPhones in China, the company has been focusing on reducing its reliance on the country since the closure of COVID-19 and has increasingly turned to India as a counterbalance, where it can also produce around 30 million units a year, according to a Bloomberg analysis.

But did you know exactly what it costs to make Apple’s latest and greatest iPhone 16 Pro Max, and which component is the most expensive for the Cupertino-based tech giant to source? Here’s a detailed look at what it costs to build an iPhone 16 Pro Max.

How much does it cost Apple to make iPhone 16 Pro Max? 

According to research firm TD Cowen’s analysis last year, Apple spends around $485 to make a 256GB version of the iPhone 16 Pro Max, which includes the cost of components, the box and even the assembly process. By comparison, the iPhone 15 Pro Max was built at a cost of $453, $32 cheaper than the new variant.

Despite the higher manufacturing costs, Apple sells the iPhone 16 Pro Max at the same price of $1,199 as last year’s Pro model.

The most expensive component is a tie between the 6.9-inch Super Retina XDR display and the rear camera setup – both costing $80, or around 16% of the total cost. The iPhone 16 Pro Max features a 48-megapixel primary camera, a 48-megapixel ultra-wide-angle lens and a 12-megapixel telephoto shooter.

The other expensive components of the iPhone 16 Pro Max are the A18 processor, which costs $45 or about 9% of the cost, and the 5G modem, which costs $28 or about 6% of the cost.

What about the iPhone 16? 

Apple’s manufacturing costs for the iPhone 16 were also projected to rise to $416, an increase of $21 from the projected costs for the iPhone 15.

Similar to the 16 Pro Max, the display continued to be the most expensive component for Apple, costing $65. Meanwhile, the A18 chip and 5G modem cost the same $45 and $28 as the 16 Pro Max, but accounted for 16% and 11% of product costs respectively.