What a 50% profit margin,thats insane. They should lower the price tag just a bit.

While I agree 50% profit margin is pretty huge, but I would think Apple spends tons of money developing something like this, and that isn't taken into account. A price 50-100 dollars lower would be quite welcome though :)

50% Wow!!!
I think thats awsome. I would love to be in a position where I could charge a 50% mark-up from the original cost of manufacturing. Big-ups to Apple.
Although I regret to announce that I will buying one, due to that fact that, well Im broke.
But hey thats me...

Silo.

honestly, a ton of people follow the apple name like a cult, whereas their product quality and r&d do not show much more of an investment than other hand held electronics. their touting of gadgets and gizmos of most pointless use are the only thing that will sell this item. and working as a technician on apple products their reliability better have improved or their in worse trouble as a company with even more lawsuits.

50% profit margin isn't that obscene, everybody involved in the whole life cycle of manufacturing to sale has to make their own cut, remember. It isn't like Apple just walks into a retailer's store, drops them on the shelf and takes the entire sale value. Apple has to recoup R&D costs, along with advertising and development costs for iTunes, the wholesaler makes their margin, transport companies make their commission for delivery, the retailer has to make their profit to pay wages and for floor space etc...

I think the price is steep but was really the way it was going to be because its the first phone of its kind. I will wait and see what happens.

If you think that 50% is a big profit margin think about clothing. A store will sell a shirt for $15 dollars before xmas, and after words you'll find the shirt on clearance for $5. That company is making a big deal out of it because it says Apple on the back.

I'm sure they'll lower prices once sales have leveled off to some prescribed sales volume only they know.

If you know anything about Apple, it's that prices don't drop. Usually an item gets replaced with a better version, and all the older versions disappear so you can't even get a deal on those.

apple thinks so much of themselve, i wish Jobs wasnt so stuck up in himself. apple gives everyone the shaft. good products, but 2ce the price for half the product in most cases outside their computers.

apple should really bring the prices down
i mean a psp screen is like 10 times bigger than the ipod nano, and psp is way more functional,i pod nano arround 200
psp 200
1 gig memory stick 15 in ohio. i mean come on

if u look at it closely it looks like a knock off palm

I agree, but I'd call it a knock-up...

Um maybe I need to go back to school but if it costs $250 to make and you charge $500. That would be ratio of 2:1 not 1:2. Making it a 100% markup and not 50%.

Again if my math is wrong somebody please correct me! W2 's are coming soon and I don't want to screw up my taxes!

what they are saying is that 50% is profits. if you were talking about mark up percentage, then yes it would be a 100% markup.

what?

50% profit is already a lot. what more do they want?

come on kids.
this article was meant to trash apple.
most products you buy in the store are marked up %100 by the distributor after paying the chinese factory were they are made.
in this case the article is talking about the HARDWARE BILL OF MATERIAL.
not the cost of the item. Apple has a sizable company payroll, non of those people manufacture or assemble hardware. A major part of the cost of an Apple product is in the creation of software to make it functional.
how much do you think the "parts" in a car cost?
The fact that Apple replaces products all the time is because they are PAYING soiftware engineers to advance them.
A concept thats a little foreign in the Microsoft World.

after I think about it I wouldnt mind paying top dollar for this, I mean already own an MP3 phone just because i dont have to carry my phone,keys,lighter and an I pod. so this way all I carry is Iphone,keys and lighter. Now if only the iphone lit my cigarrettes and turned on my car......

There is some speculation going around that Apple will lower the price on their iPhone on the day of the release, with a rebate ranging between $50-$150; depending on which version you buy(4GB or 8GB). So if this is true the price of the 4GB will around $400, which is very good compared to its features and that early in the market.