The most expensive part of the iPhone 16 Pro Max isn’t the A18 chip. That crown belongs to the 6.9-inch Super Retina XDR display and the upgraded rear camera setup. Each of these components costs Apple about $80. Both hold a 16% share in the phone’s total build cost.
Surprising numbers behind the chip: This might come as a surprise. The chip often gets the most attention. It drives performance, powers features, and sits at the heart of the iPhone experience. But from a cost point of view, the chip isn’t the leader. The A18 chip comes in at $45—just 9% of the total cost. That puts it far behind the display and the camera when it comes to the money Apple spends on building this device.
The Super Retina XDR display continues a trend seen across Apple’s premium phones. Advanced OLED technology, ProMotion support, and always-on display features push its cost up. For many buyers, the screen is the first thing to notice.
The brightness, smoothness, and clarity leave a strong impression. Apple clearly invests heavily in getting that experience right.
The rear camera system is tied in cost. Its setup includes a 48MP main sensor, a 48MP ultra-wide lens, and a 12MP telephoto shooter. These specs support top-notch photography. Apple's focus on computational photography also adds to this cost. High-quality lenses and image processing components don’t come cheap.
Together, the display and the camera system form the visual and creative core of the iPhone. They are the primary tools for seeing, sharing, and capturing. While the A18 chip provides power, the display and camera deliver interaction and memory-making. This alignment of user experience with production cost tells its own story.
The iPhone 16 Pro Max costs Apple about $485 to produce. That includes every part—from the body to the box. Despite the higher costs compared to previous models, the retail price remains steady at $1,199. The iPhone 15 Pro Max cost $453 to make. The $32 jump in production doesn’t reflect in the final price tag.
Apple's strategy seems clear. Maintain price stability while quietly absorbing higher expenses. With growing competition in the premium smartphone segment, value perception matters more than ever. Keeping the price unchanged even with higher costs helps preserve that perception.
Other parts of the phone also add weight. The 5G modem, for instance, costs $28 and accounts for 6% of the total cost. Components like memory, chassis, and charging systems contribute their own share. Still, no single part outside the display and the camera crosses the $80 mark.
It is not a new noggin. The previous generation iPhone 11 Pro was priced in a similar manner, where the display was weighing mostly on the cost factor. But the gap between components has narrowed. As camera systems grow more complex, their cost edges closer to the display. Together, they now form the bulk of Apple’s production expense on the iPhone 16 Pro Max.
Apple must consider the dynamics of its supply chain. The company has finally started diversifying its supply chain from China. India is the other location with the potential to make around 30 million units a year.
It set off the move during COVID shutdowns. The political pressure is only speeding it up. The change in production geography will change the prices of components in the future, but as it stands, it is a valid premise.
The base iPhone 16 tells a similar story. It costs $416 to make, and the display, at $65, remains the costliest part. The A18 chip and 5G modem prices stay the same as the Pro Max model, but they take up a higher percentage of the total cost. This reflects a leaner component mix in the standard variant.
The message from these figures is simple. For Apple, the display and camera now drive the most expense. The chip, while powerful, doesn’t cost the most. Cost priorities reflect design priorities. Seeing and capturing are now as important—if not more so—than computing power.
This shift is not just technical. It’s strategic. It shapes how iPhones are built, sold, and positioned. As long as premium visuals and photography remain central to the iPhone identity, expect these two components to continue leading the cost chart.