Originally Posted By: mlord
it does give an indicator of true manufacturing costs

Here's an interesting tidbit from the Apple v. Samsung legal battles.

Profit margins on the iPad are 23% to 32% and profit margins on the iPhone are 49% to 58%.

That means that the cost of manufacturing a $500 iPad is $340 to $385, assuming Apple sells them all at retail price. (I imagine most are still sold directly and not through other channels, but I could be wrong. If I am, the manufacturing cost would be less.)

Costs of an iPhone are harder to figure, since they virtually all get sold through indirect channels and the final retail price is, almost certainly, below cost.
_________________________
Bitt Faulk