Macbooks are one of the most popular products of Apple that the company produces for professionals, and they are quite famous. So, how much does it cost Apple to make a laptop?
Apple MacBook Manufacturing Costs:
- Apple M1 Chip’s cost of $40 per silicon is against $200 Intel i5/i7 to create the iMac system for approximately $500, which adds far too much value to their bottom line from the MSPR of $1249.
- Apple MacBook Air M1 costs $683, which profited $316 per unit, and it’s the (2021) model estimate, that sold for an MSRP of $999.
- Intel-Based Apple MacBook Air: Apple’s lowest-priced MacBook Air costs the corporation $718 to create, and ends up with a massive profit margin per unit from an MSRP of $1199.
Manufacturing Cost of Apples New Mac Systems
Several factors go into calculating the cost of manufacturing a laptop. The price of materials, labor costs, and shipping expenses all play a role. To get an accurate estimate, it is necessary to look at each component that goes into making a laptop.
I’ve included the production costs of Apple MacBooks and Mac systems in this list:
- M1-Based Apple iMac: Apple’s cost to build an M1-based iMac and Mac mini is approximately $200, which is a fraction of the retail costs.
- M1-Based Apple MacBook Pro: Apple MacBook Pro with M1 CPUs costs roughly $499 per unit, which also profits a huge margin since the M1 chip is worth $40 per die.
- To our estimates, the Apple M2 chip costs around $30 per die, it’s an improvement over last year’s $40 per die, which means great profit to become a billion-dollar company.
- M2-Based Apple MacBook Air: Apple has added $200 to the M2 price over the M1 price, resulting in increased price brackets for both the M2 Macbook Air and M2 MacBook Pro models.
- The M2 MacBook Air costs $1299 retail, while the M2 MacBook Pro costs $1399 retail. Both have at least a $200 price increase over the previous generation.
- It costs roughly $500 for Apple to build these new chips and MacBook computers, which gives a significant profit margin per unit.
In production, one of the most expensive components is the display. LCDs can range in price from $20 to $200 per unit. Apple spends on Samsung displays, and sources both LCDs or AMOLED panels for all their products.
Another expensive component is the processor (chipset), since the introduction of M1 chips, Apple has been able to generate a large amount of profit from each product sold, ranging from MacBooks, iMacs, iPhones, and now the Apple Watch, and several other gadgets in the future.
Note: During our research we found: Sumit Gupta, IBM AI strategy head, who performed the computations. He thinks that the M1 chip will cost Apple between $40 and $50 to produce, compared to roughly $200 for the Intel Core i5 processor in the MacBook Air and more for the version in the entry-level MacBook Pro.
What is Apple’s Profit Margin on MacBooks?
Apple is a publicly-traded company and as such, they have to disclose its financial information. In their last earnings report, they reported that the gross margin for the MacBooks was about 36%.
This means that for every $1,000 that they sell an IMac for, they only make $360 in profit. This profit margin has been declining in recent years as the cost of components has increased.