[sorge]

Hmmm all seems pretty standard......

Revenue - Marginal Cost(175 apparently)= Contribution margin

Contribution Margin is then used to pay off fixed cost, such RnD, adversiting, replacing bad units.....and so on.

After that they get.....profit....the Iphone cost about the same to make and it costs more.

Thats not even a high mark up.....only 250ish%. Go buy a 6 dollar aux cable in a store and there you have a real mark up.