However it seems while the iPhone Xs Max might cost that much to consumers, it apparently only costs Apple about a third to make it. According to TechInsights, they claim that the 256GB iPhone Xs Max apparently only cost Apple about $443 to make. This is a slight increase in costs from the 64GB iPhone X in 2017 which is said to have cost $395.44.
The increase in costs is said to have been attributed to the large OLED display which costs $80.50 versus $77.27 for the 5.8-inch display last year. However it could have cost more but according to Al Cowsky, who oversees the cost analysis at TechInsights, told Reuters that it is because Apple had moved some components related to 3D Touch.
That being said, these cost estimates should be taken with a grain of salt. While the components could indeed cost that much, there are other factors that should be taken into consideration, such as the costs of R&D, staff salary, marketing, packaging, and etc. Unsurprisingly Apple has declined to comment on the report.