Half of iPhone's Price: Pure Profit; No Discounts
"With the cost to manufacture an 8 GB iPhone estimated to be about $280 in total expense, the remainder of the $599 total retail price is estimated to be pure profit – which will flow back to Apple, as the company is forbidding carriers to subsidize or discount the phones."
I would get the iPhone if it was $300 or $350. $320 in pure profit is crazy. It'll still sell better than any other phone on the market, though.