The profit margin on the iPhone is 35%. The App Store currently runs at a large profit (estimated to be 70%) primarily from in app purchases in the gaming categ

The profit margin on the iPhone is 35%. The App Store currently runs at a large profit (estimated to be 70%) primarily from in app purchases in the gaming category. Your purchasing habits are not indicative of the mainstream; further, the iPhone isn't priced based on cost to the cost to design or manufacture.