> Apple's gross margins on its devices, essentially the selling price less the manufacturing costs, is about 30-40% company-wide. That translates into an operat

> Apple's gross margins on its devices, essentially the selling price less the manufacturing costs, is about 30-40% company-wide. That translates into an operating margin (which includes all costs) in the 20-30% range. Of course there are other expenses (those $10M Apple Stores don't build themselves), but you're incorrect about the operating margin. For Q4 2012 AAPL had an operating margin of 34% (gross margin was 40%).