[criley2]

Apple always goes on margin. The extra memory versions of the iPhone are all margin.

When you get to the $850 iPhone with 64GB of memory, the profit margin is generally around 75%.

As in, it costs them $215 to make a $850 device.

Apple rarely dips below 40% margin on it's products it seems.

Now that Apple has over $100,000,000,000.00 in it's little hedge fund and has become the largest fund in the world (iirc), I've begun to look at the iPhone as the worlds most successful hedge fund capital raising scheme.

[iaskwhy]

"Always" might be too extreme given the iPad Mini. Also, I would consider an upsell of the same model a different thing from the base price of different models.