Here’s what it costs Apple to make an iPhone: How Donald Trump could make it even more expensive

iPhone

Ever wondered how much it actually costs Apple to make an iPhone? Turns out, it is quite less than what we pay at the store but that might be changing if US President Donald Trump follows through on his tariff plans.

A new report by The Wall Street Journal breaks down the cost of making the iPhone 16 Pro, and things could get a lot pricier thanks to Trump’s proposed 54% tariff on goods imported from China.

Here’s the current math:

Apple spends around $580 (Rs 50,000 approximately) to make a 256GB iPhone 16 Pro, which includes parts like the A18 Pro chip ($90.85), rear camera system ($126.95), display ($37.97), and other components. Apple sells that phone in the U.S. for $1,099, leaving room for a healthy profit — even after factoring in marketing, research, packaging, and shipping.

But here’s where it gets tricky. Although Apple’s parts come from all over the world, the iPhones are assembled in China. That means the 54% tariff Trump has proposed would apply to the entire manufacturing cost, not the retail price.

With the tariff, Apple’s cost to make that same phone would jump to around $847 (Rs 73,379). That’s a big hit to profits. And realistically, Apple probably won’t just absorb the extra cost.

So what does this mean for you? Higher iPhone prices could be on the way — especially if Apple decides to pass on some or most of the added cost to consumers.

As for building iPhones in the US instead? Experts say it’s just not practical. What costs $30 in labor per phone in China could cost $300 in the U.S., making American-assembled iPhones way more expensive.

Apple hasn’t said how it plans to deal with all this, but one thing’s clear: if these tariffs go through, the next iPhone might come with a much heftier price tag.