The real cost of your iPhone: Apple spends less than $500 on the parts and production of the iPhone 11 Pro Max - but charges up to $1,449 | WHAT REALLY HAPPENED

The real cost of your iPhone: Apple spends less than $500 on the parts and production of the iPhone 11 Pro Max - but charges up to $1,449

A teardown of the smartphone has revealed that including parts and assembly, the Cupertino company is only paying $490.50 for a finished handset.

However, the $490.50 price tag does not include shipping, wages of people who handle assemble and costs of services that are free with each iPhone such as AppleCare and iCloud syncing.

The teardown the 512GB iPhone 11 Pro Max was conducted by TechInsights in collaboration with NBC News.

The camera created specifically for this smartphone has been praised for its stunning capabilities, making it the most expensive piece of hardware at $73.50.

And the 6.5-inch Super Retina XDR display comes in second at $66.50 and the powerful A13 Bionic chip cost Apple just $64.

Although the cost of parts is just shy of $500, this does not included the extra fees for shipping, labor and paying for free services.

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