When I saw the prices of the two iPhone (or whatever they're going to end up calling it) models, I was a bit more than flabbergasted. The results of this iSuppli study pretty much confirm that Apple will be making a killing on anyone who does pony up for one of these. Can you imagine the margins on models that eventually sell without the (currently) required Cingular (AT&T) plan?

"Research firm iSuppli said that at $500, the 4GB iPhone will create a profit of 50.7 per cent, and the $600 8GB model will return the company a 53.1 per cent profit over manufacturing costs. ISuppli estimated that after hardware, software, manufacturing and licensing costs, Apple is paying $245.83 and $280.83 for the 4GB and 8GB devices respectively."