[kenrikm]

It costs them around $300 (Can't say exactly, however the LTE version was pegged at $330, could be less depending on volume deals) they are making a sizable portion of that 1.8bil in net profit.

[thehigherlife]

cost of parts for the device != cost to manufacture/design device

[kenrikm]

You're of course right and that's why I said "A sizable portion" ;)