Apple has always had huge profit margins for one simple reason: Apple customers (iSnobs) will buy their overpriced and overrated products no matter what because they are hip and cool.

Also, by having everything so damn restrictive their R&D costs are minimal compared to other companies. I mean, look at the iPhone, their software guys only have to support 1 platform, 2 combinations of hardware.

Apple hit the jackpot when they introduced an simple, easy to use smartphone at the exact right time. And having everyone believe it was a bargain at "$199" (really, if you add the subsidized cost Apple makes $600+ per iPhone). It's just a toy though, nothing else.

Apple = marketing gods