HOW Profitable Is The iPhone? Man, You Got NO Idea…

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Turley Muller is an unemployed former mortgage trading analyst who's been filling his down time by running the Financial Alchemist blog.  One of his regular objects of scrutiny is Apple, and his reports guesstimating the House of Jobs' quarterly earnings have come closer than Wall Street's estimates for four financial quarters running.

So you might want to pay attention to Muller when he declares that he — and not the Street — better groks the impact of the iPhone's popularity on Apple's bottom line.  In particular, he pegs Apple's gross profit margins on the magic handset to be a whopping 58.4%.  The iPhone is such a little money-printing machine, Muller claims, that Apple uses those profits to subsidize price cuts on the rest of its product line without any noticeable impact on overall gross margins.

All you future Gordon Gekkos can read Muller's full report here.

[Via Fortune/CNN Money]

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