If you think of quality and unmatched device performance, you must think of Apple. It is a gigantic brand in the industry, and its iDevices are always high in demand, selling out soon after release. One outstanding feature that many buyers notice is the hefty price tag, leading to questions like what is the manufacturing cost and the average profit on each product?
So, how much does it cost Apple to make a MacBook, and how much does Apple make on each? If you include about $100 for R&D, the MacBook Air costs Apple about $700, while the Pro models range from $1150 to $1500. These cost factors in the price vary based on components such as chips, displays, ports, SSDs, cooling systems, speakers, mics, batteries, and other extra parts. Subtracting the market value from the manufacturing cost, Apple can make anything between $300 to $1800, which translates to 35-45% of sales.
When comparing prices, many prospective MacBook buyers first notice the massive difference in price points compared to other laptop brands. As any curious new users, you may wonder how much Apple pays for each part and how much it earns as profits. Accounting for the MacBook Pro and Air, the following are close estimates.
After factoring about $100 for R&D, it costs Apple roughly $683 to make the MacBook Air and $1156 and $1492 for the 16 and 14-inch Pro models. These costs include chips, cooling components, displays, SSDs, ports, speakers, batteries, etc.
Eventually, going by the current market prices, Apple earns around $316 on the Air and $1143 and $1807 on the 14 and 16-inch laptops, respectively. Ultimately, Apple makes more than other brands earning approximately 35-45% on MacBook sales.
First-time iDevice buyers’ initial thought is that Apple fleeces customers by setting their prices higher than average. However, the cost is worth it given the work and quality in manufacturing and assembly of all components to form the MacBook. A lot of time and money goes into developing competitive devices that customers worldwide appreciate.
The software to back all the components also costs Apple heavily, besides the handsome payment for the skilled workers at each stage. Apple obtains all the parts from different suppliers before everything can come together, leading to differing prices across models.
You can learn the cost of each component and subtract the difference against the buying price to find out how much Apple makes for every MacBook purchase.
The M1 chip costs $78, while the Pro and Max chips are worth $126 and $235. On the other hand, the 8GB RAM on MacBook Air costs $50, while the 16 and 32 GB versions are $82 and $113. Each laptop features high-performance SSDs that are Nand Flash and numerous transistors for data storage; every 3GB/s SSD is worth $51, but the better 5.5GB/s SSD costs $82.
Another desirable feature of the iDevices is the crispy display, for which the Mini-LED versions of the MacBook Pro cost the company around $200-250. They are 120Hz, providing excellent quality visuals, especially in HDR. However, the Air has an LCD screen, which is significantly cheaper at about $50. Another essential aspect to consider is the cooling components that check the computer’s operations.
There are no fans in the lightweight Mac Air, hence the system is priced at only $15, but the two fans in the Pro are about $46. Additionally, the excellent sound system speakers cost $25- 50, depending on whether Apple included features like noise cancellation.
The ports, mic, and cameras are the cheapest components ranging from $15 to $ 50. Lastly, the chassis and batteries for all models are approximately $50, while the extra parts and gimmicks are worth about $200.
How Much Does It Cost To Make a MacBook Pro?
Apple puts a lot of work into creating its iDevices, as it deploys extensive research to ensure that they solve the users’ needs. MacBooks are some of the priciest gadgets from Apple due to the tech involved in the manufacture. One pressing question is how much it costs the company to make this sleek PC.
A MacBook Pro costs Apple between $1100-1500 to make, depending on several factors. Pro models with more powerful features are likely to attract higher manufacturing costs. For instance, a core i7 laptop may be more expensive than its Core i5 counterpart.
Also, the display on your computer, the quality of chips Apple used, and additional high-performance factors can influence its total overhead and, consequently, the pricing point.
MacBook Pro comes in different models besides the original, and Apple has consistently released other Pros up to the latest sleek 14-inch. Your best bet would be the newest model with excellent software and hardware that can effortlessly meet all your needs if you need one.
As any curious first-timer, you may be concerned that it is too pricey, unlike other brands, but as you are yet to see, it is also expensive for Apple to manufacture.
First, note that newer MacBook Pros use either M1, M Pro, or M1 Max chips, for which your pick depends on your workload and performance preferences. M1 rates at $78, M1 Pro, may cost about $130, while the M1 Max is around $235. The lower M1 chip would support a maximum of 16GB, which costs roughly $80, but an 8GB and 64GB go for about $110 and $50, respectively.
Additionally, the complete cooling system is $46, and screen prices will vary depending on your preference. A 14″ LED display may go for $200, and the costs increase according to the size.
Furthermore, the keyboard, trackpad, and speakers can rake about $100 while the cameras, microphones, and ports are only $75. Finally, the casing and battery may range between $45-65, minus miscellaneous costs for cables and research and development.
How Much Does It Cost To Make a MacBook Air?
Apple invests a lot to ensure that its clients get nothing but the best, however pricey it might seem. The services you receive will be worth the money in the long run, explaining why new releases are always in high demand. If you want to learn more, you may want to know how much Apple pays for a MacBook Air.
It costs Apple approximately $680-720 to manufacture a new MacBook Air, making it one of the most affordable MacBooks. The MacBook Pro has better components and larger overhead margins than the Air.
The latest, most affordable Air comes with an M1 chip, although the product’s prices will inflate depending on the internal components. Unlike the latest MacBooks, the Air helps you save a lot of money thanks to the low-scaled parts like the speakers and ports.
Unlike some Apple laptops, the Mac Air devices only run the original M1 logic board, which goes for about $80, while the chip boasts an 8-core CPU and GPU, providing adequate power for all your computing tasks.
Furthermore, the chipset can comfortably manage a RAM of up to 16GB, and if you create and test the component, the cost may be approximately $80. Since it goes hand in hand with the SSD (solid-state drive), a 500GB storage would cost $50.
Furthermore, MacBook Air ports may be priced at about $30, and the 720p cameras plus a microphone may cost no more than $15. Although it lacks a noise cancellation feature, the 13″ Mac Air also has a great speaker, going for $25-30.
Input devices are vital, and you may part with about $75 to fit a keyboard and a trackpad. Moreover, the 13″ Mac Air boasts an LCD screen, slightly less robust than the Mini-LED display in Pros that go for about $50.
Furthermore, to make an efficient Mac Air that won’t keep overheating, you will require a cooling system, but the iDevice only has a cooler costing between $15-20. Finally, the laptop will need a battery and a chassis for approximately $40, but there are miscellaneous costs like adapters, and other extras, besides the R&D.
What Makes MacBook Air So Expensive?
If you are transitioning from a PC from other manufacturers and want to buy a MacBook Air, you may be worried that Apple may be tricking you based on the hefty price tag. The following incredible details about the device may help change your mind.
The aspects that make the MacBook Air or any other iDevice expensive are high-quality hardware, excellent performance, durability, security, gadget integration, user-friendliness, and fantastic customer service. The hardware is top-notch, combining the best quality components from reliable suppliers.
Secondly, users love how the laptop is easy to use and how it effortlessly integrates with the iPad and iPhone. Moreover, the Air is durable, has long-lasting batteries, and is very secure. Lastly, marketing, branding, and customer service contribute to the increase in price.
The following are the top reasons why the MacBook Air is one of the highest-priced laptops today.
- Hardware
From the high performance, you can tell that Apple carefully designs the device’s internal components to be impressive, hence the price tag. It is incredible what this sleek PC can do.
For instance, the trackpad senses pressure and won’t require you to click, and the display is bright and crystal clear for all your needs. Generally, all the features are outstanding, such that you don’t have to pay more for upgrades in the future.
- User Friendly
Even if you are a first-time owner of a MacBook, you will be excited to know how convenient it is to use the Mac Air, especially if you have another iDevice. All the systems are aligned to help you learn the ropes, and soon you can effortlessly manage the programs. If you doubt your tech skills, you can get the Air from Apple stores and ask the staff to help you get it running.
- Interaction with other iDevices
Most MacBook owners already have an iPhone or iPad and enjoy seamless integration between all the devices. They work harmoniously, making the Air very convenient, an aspect that is worth paying more to obtain.
Your phone or tablet can work with the PC to help you complete your projects and assignments in no time, and you don’t have to struggle when sending and receiving files, unlike with other gadgets.
- Security
Apple is stringent on making all its devices secure to keep the user’s data private. Although the MacBook Air is not immune to hacking, it is still one of the most challenging systems to break into, and Apple ensures that it stays this way thanks to its constant updates and other strict security features. To benefit from using a fortified PC system, users will have to pay more for the MacBook Air.
- Long-Lasting Batteries
If your laptop is for work or school, one of the first aspects to consider is the battery life. A lasting battery gives you more usage time in transit and places without a direct power source.
The special MacBook Air batteries come in reduced sizes but are one of the most powerful, lasting relatively longer without requiring a recharge. They are also durable, able to survive the Air’s lifespan, and you won’t have to replace them.
- Customer service
Apple heavily invests in its human resource to find the most skilled staff to handle manufacturing, marketing, and customer service. You will see the difference when you interact with some at the Apple store.
They are adequately trained, friendly, and can answer any questions about the MacBook Air. Moreover, owning an iDevice gives you peace of mind because you know that the staff can fix any issue and get your laptop running again.
- Durability
Most cheap products only last a few years, but the MacBook Air has a unique construction to last longer. You may have to pay more to own one, but it is worth the price of a few low-quality options. Therefore, you will find it worth every penny since you won’t have a problem with it with proper care and maintenance. You can even get an extended warranty to obtain more years.
Wrap Up
A MacBook may seem pricey, but you will understand why when you take a closer look and start using it. The performance is excellent, the hardware is fantastic, and it has other impressive features like long battery life and user-friendliness. However, the most significant contributor to the high price point is Apple’s expensive manufacturing cost.
The manufacturers select each component carefully to ensure that it is of the best quality and durable. Even the aluminum casing and sleek design will tell you that the parts are not subpar. Buying a MacBook means years of service, and you won’t have to keep going for repairs, eventually realizing that the cost is worth it.
