A recent report states that Apple’s iPhone 5s costs $191 to produce. The calculated costs of the components that make up a 16 GB iPhone 5S cost a total of $190.70. Manufacturing costs add another $8, bringing the total production cost to $198.70. It actually cost Apple less to produce the lower end iPhone 5C than it did the iPhone 5. Apple is seeing strong sales of its latest devices running iOS 7 which consumers are receiving well, except for the few cases of the dreaded blue screen of death caused by apps. Still, Apple’s costs to produce the iPhone 5s is $198 while they sell the device between $649 and $849 without a contract producing some healthy profit margins for the company that sold 9 million units in the first 3 days of shelf life.