@Peter
The cost of manufacturing an iPhone is less than 1% of the list price. Selling, general and administrative (SG&A) expenses are about 7%. Apple run a 40% gross profit margin, most of which is 'earned' in Cupertino.
http://www.cultofmac.com/455536/advertising-budget/
http://www.independent.co.uk/news/uk/home-news/iphone-7-costs-apple-make-manufacture-a7329016.html