Apple iPhone XS Max: Total Parts Cost vs. Retail Price

The Apple iPhone XS Max retails for $1,099. But the total cost of all the parts that form the phone costs only $390 according to an article in the journal. The markups on iPhones in general is huge and so this phone is also not an exception.

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Source: What’s Inside the New iPhone, WSJ

Its not only Apple(AAPL) that add high markups to its products. Another example is Starbucks (SBUX) which charges a huge premium for its coffee. As long as the market is willing to pay the quoted price companies are free to charge as much as they want.

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