Apple sells an iPhone for around $650. A report says Apple's cost of Goods sold (COGS) is $293. Of this COGS, the bill of materials (e.g. touchscreen cost) for an iPhone is $200. That means Apple spends around $90 on manufacturing, warranty, and transporting/warehousing. Did you know that an iPhone takes 24 hours to be built? Read more on this here. (also read to get an idea of Apple's much maligned outsourced labor practices) - incidentally, labor costs form about 2-5% of an iPhone's sales price.