This is a very interesting data point. Although Nokia sells over a billion phones a year, this proves that you can target a narrow sliver of a huge market with futuristic innovation and still gain the majority of the profit available in the whole market.<p>Moreover, you create real value by innovating and pushing the future forward, reaping the reward from that. Nintendo has similar strategies.
How were they calculating operating margins?<p>Lots of Apple bashers love screaming about how Apple has huge margins because the cult will buy any old iPoo, yada yada reality distortion field.<p>But on the Apple financials call they pretty consistently come in just under 30% on their product margins, and these guys (asymco) have them peaking at almost 50%.<p>Is this based on some backyard analyst's estimated component cost breakdown? In which case it is a worthless guesstimate, or is it based on official numbers?