You make very good points, which were further elaborated (by Gruber re:iSuppli and the iPhone) here: <a href="http://daringfireball.net/2007/07/isuppli" rel="nofollow">http://daringfireball.net/2007/07/isuppli</a><p>These estimations on profit margins are really useless, and tend to take the discourse off track.