IPhones Fat Profit Margin

I guess only Apple can get away with a 55% profit margin on a tech device.

On Tuesday, iSuppli reported that a teardown analysis of the iPhone
showed its bill of materials and manufacturing costs totaled $265.83. That means
Apple would generate a margin of more than 55 percent for every 8 gigabyte
iPhone it sold for the $599 retail price, iSuppli said in a report.

Eric Pratt, iSuppli's senior director of teardown, said iSuppli is
still fine-tuning its report and it now thinks that the product's margin is over
50 percent, when accounting for factors like royalties and software costs. He
wasn't surprised by the margin, he said, because the company's earlier
research-based modeling called for a basic iPhone cost of $264.85.