The iPhone sells for $599 and is quite profitable. The actual materials are $265 for a gross profit margin of 55%. Now that doesn't include licensing and internal shipping costs, which could add another 10-20%.

Infineon supplies the digital baseband, RF transceiver, and power management. National Semiconductor provides serial display interface. Balda from Germany and TPK Holdings from China supply the $27display module. Touchscreen materials are $24.50 with parts from Epson, Sharp, and Toshiba Matsushita Display. The biggest supplier is Samsung. It received $76.25 for the ARM RISC processor and NAND flash and DRAM memory.

Other suppliers are Wolfson for the audio codec, CSR for the Bluetooth chip, and Marvell for the WiFi baseband chip.