"Take a look at this iPhone 16 Pro. Your cost, for the 256GB version, is $1,100. The cost of all the hardware inside—aka the bill of materials—was about $550 to Apple when the phone was introduced, says Wayne Lam, research analyst at TechInsights, which breaks down major products. Throw in assembly and testing and Apple’s cost rises to around $580. Even when you account for Apple’s advertising budget and all the included services—iMessage, iCloud, etc.—there’s still a healthy profit margin.
Now factor in the newly announced tariff for goods from China, which currently totals 54%. The cost rises to around $850. That profit margin would shrink dramatically if Apple didn’t up the price. And you don’t become a trillion-dollar gadget company by charging for things at cost."
https://www.wsj.com/tech/personal-tech/iphone-apple-tariffs-china-bb20c7a3?st=uZeNUf&reflink=desktopwebshare_permalink