The shocking manufacturing cost of the iPhone 17 Pro Max has been revealed and Apple is reportedly set to make a huge profit.
Apple fans have been eager to get their hands on the latest iPhone model after it officially dropped last month.
The new iPhone 17 comes in four different variations including the Pro Max and first ever iPhone Air.
The iPhone 17 Pro Max doesn’t come cheap though, with the cost setting consumers back by $1,199.
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So, how much does it cost to actually produce the device? It will probably not come as a shock to many that the production costs are much lower than the retail price.
According to a report by Pubity, the estimated cost of the physical components of the smartphone only comes to around $408.
This includes things like the camera system, A-series chip, 5G modem, and the display.
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However, while the figures might be a lot lower than the price tag, that doesn’t mean that the remaining $790 is completely profit for the tech giant.
There are of course additional costs that come with manufacturing the device, such as research and development, global assembly lines and quality checks.
There are also the added costs of the Apple Stores themselves that house the phones before they are sold and innovation into the new products.
So, while the true profit is difficult to pinpoint, it is fair to say that Apple will be bringing in the cash with its new iPhone release.
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Many people have taken to social media to react to the news, with one user writing on Instagram: “Research, assembly, employee salary, advertisement, etc also play rule to the cost, but still expensive.”
Another said: “It should be a well known fact apple makes more than 50% profit off all their phones.”
A third person commented: “And what about software, testing, various costs of labor, marketing, taxes and business ideas behind to be rewarded for innovation, creativity and originality?
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“It’s obvious they have to make some profit, I don’t think anybody wants to work for free, especially by doing business at those levels.”
And a fourth added: “Everyone commenting about it being overpriced for the cost of of the individual parts is acting like they would agree go to work on a daily basis to work on this thing before it’s released while receiving minimum wage because the general public deserves to have this phone at a price of $500.”