It costs 464 dollars in materials to build the iPhone 14 pro max 128 Gb, and sells for 1099. The remaining 635 dollars after tax is about 400-300, and they still have to pay for the research & development, shipping, customer acquisition, sales, legal, and overhead. This leaves them with a 25% net profit margin of sales.
Then, because they are a publicly traded company, their profit is split between the shareholders (the U.S. public where anyone can invest and profit) or reinvested in the company, providing growth and jobs.
Major-Cardiologist-3 t1_jeb61s0 wrote
Reply to comment by [deleted] in Periscope “telephoto” only for those who buy the most expensive iPhone. A well-known analyst revealed details about the new iPhone 15 Pro Max camera by chrisdh79
It costs 464 dollars in materials to build the iPhone 14 pro max 128 Gb, and sells for 1099. The remaining 635 dollars after tax is about 400-300, and they still have to pay for the research & development, shipping, customer acquisition, sales, legal, and overhead. This leaves them with a 25% net profit margin of sales.
Then, because they are a publicly traded company, their profit is split between the shareholders (the U.S. public where anyone can invest and profit) or reinvested in the company, providing growth and jobs.