It is well known that the iPhone is the most popular and most profitable product Apple produces. But how profitable is it? Why does Apple produce devices and products which generally cost more than the average competitors?
According to an Article on MSN news (linked below), an average 16Gb iPhone costs Apple around $207. This means that a 16GB iPhone, priced at $649, would be making Apple $442 per phone, excluding other charges like postage. It is lead to believe that Apple have a high percentage of income per device. Taking under consideration this example, assuming the actual profit is of about $400 per phone, Apple would be making 58% - 63% per device.