[citation][nom]wotan31[/nom]@insider3 you couldn't be more wrong. Apple is absolutely NOT making $400 profit on each phone. "Worth" and "Cost" are two very different things. The iPhone *costs* $188 in parts, to manufacture. That does not include the cost of child labor to build the phones. That does not include all the research and development to design the thing. That does not include the cost of software development to design the software that it runs. That does not include the cost of marketing to advertise the thing. That does not include the cost of running a retail sales operation (i.e. Apple Store) to sell the thing. That does not include the cost of all the regulatory testing and approval to sell the thing in each country where its sold. I don't even like the iPhone 4, but please, you have absolutely no concept of cost and profits.[/citation]
Fixed.
Also, the real rip off is the contract price. You end up paying far more than you would if it was unlocked and new. As for R&D, it'll cost a fortune, but I guarantee you're still being overcharged.