The $1,199 iPhone Costs $408 to Make — Where Does the Rest Go?

The iPhone 17 Pro Max sells for $1,199. But analysts estimate every physical component inside — chip, cameras, display, battery, all of it — adds up to about $408. So where does the other $791 go? We break down the full bill of materials, the parts Apple marks up 3-4x when selling to YOU, and what the $408 number conveniently leaves out. Chapters: 0:00 — $1,199 vs $408 0:30 — The bill of materials, explained 1:15 — The most expensive parts (chip, modem, cameras, display) 2:00 — The cheap surprises ($4 battery?!) 2:40 — What $408 leaves out (R&D, iOS, stores, marketing) 3:20 — Apple's 3-4x repair part markups 4:00 — So... are they ripping you off? 4:40 — The real math Sources: teardown BOM estimates via Pubity/Supercar Blondie reporting; Apple Self Service Repair pricing; GSMArena. All visuals: Pexels (free license). Music: Pixabay (royalty-free). Voiceover: AI-generated.