Can conclude from information that apple is making profit

Reference no: EM131020906

An article in Forbes discussed an estimate that the cost of materials in Apple's iPhone 5 with 64 gigabytes of memory was $230. Apple was selling the iPhone 5 for $849 (most phone carriers made payments to Apple that reduced the price to consumers to $399). Can we conclude from this information that Apple is making a profit of about $619 per iPhone? Briefly explain.

Reference no: EM131020906

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