Why do Apple charge so much for iPhones when they cost like $50 to make?

I heard that to make an iphone in China costs Apple $50 a piece so why then do they sell them for £500+ ?

The cost of production is only one factor. They also have marketing, transport, fixed and vereble costs including staff and finally they get the 4ps correct so they can make profit

In short, because they can. Last I checked Harrod's does the same.
Supply and Demand. Econ 101. And that's just Apple's business model. Steve Jobs never wanted it to be a mass market type of instrument like Android anyway. Research and Development costs aside, they keep manufacturing costs down since they are produced in China. Profit margin per device is insane. Phone and tablet sales now fund most of the things that Apple wants to delve into these days. They have stockpiled more cash in offshore reserves than most small nations ever dreamed about. Not saying it's right, just saying it's business.

http://online.wsj.com/news/articles/SB10000872396390443855804577601773524745182

http://bgr.com/2013/10/02/apple-cash-reserves-147-billion-dollars/

http://www.mercurynews.com/60-second-business-break/ci_25087437/biz-break-apple-and-google-now-worlds-two

Design costs a ton of money. You don't have any clue what it costs so don't go posting as if you do.

Because people are willing to pay it. That's really the only reason. If people weren't actually out there buying them for that kind of money, they wouldn't cost that much.

They charge whatever people are willing to pay. They are in business to make money, not to serve the public trust.

The actual cost of manufacturing an iPhone 5S, by the way, is around $218, which means that the gross margin on the phone is around 75% or more, depending on the market.