I'll use US dollars here, pretax. My iPhone 6 Plus 128 GB cost me $949. Let's keep it simple for comparison purposes. Apple An iPad Air 16 GB Cellular costs $629. An iPad rMini 16 GB Cellular costs $529. An iPhone Plus 16 GB costs $749. An iPhone 6 16 GB costs $649. For every jump in memory on the iPhones, Apple charges another $100. Some other phones. A Samsung Galaxy Note 4 (32 GB) retails for ~$750. A Moto X (16 GB) retails for ~$525. A Samsung Galaxy S5 (16 GB) retails for ~$600. Why is this ok? I mean, we're paying $1000 for a 128 GB phone where this price exceeds the price of: A Mac Mini An 11" MacBook Air (128 GB)d And is only $150 less than a 21.5" iMac. Build of Materials Cost (BOMC) for iPhone 6: ~$200 Build of Materials Cost for iPhone 6 Plus: ~$215 Assemblage: ~$5 per unit. As others have said the BOMC is likely much lower as component pricing for Apple is confidential and likely lower, or much lower, than what the public has access to on a per part basis. http://www.zdnet.com/teardown-estim...o-make-iphone-6-plus-just-15-more-7000033998/ Please do not reply with the old, tired "But their R&D needs to be paid!"... "But their advertising costs need to be factored in..." If you know anything about these things you know there's a formula for that where these things are indirect costs associated with your product and that they would not account for such a massive markup from BOMC. There's limits on what you spend on these things given what you sell/think you'll sell. Here's the bottom line: We're paying more for iPhones than we are any other mainstream phone, in some cases by several hundred dollars (Moto X/S5 vs iPhone 6/Plus), as well as paying more for an entry level iPhone 6 Plus compared to an entry iPad Air Cellular. And when you factor in higher memory amounts like 128 GB, the 6 Plus costs about $1000. With such volume and low build costs, the mark up is over $500. Why is this ok?