According to a report from iSuppli, Apple's iPhone supposedly will have 50 percent gross margins. Apple's executives have declined to comment on the speculation. iSuppli pegs the BOM at $229.85 for the 4GB version of the phone and at $264.85 for the 8GB phone. Total expenses for the 4GB and 8GB models are $245.83 and $280.83, respectively. That makes the $599 8GB model more profitable with a 53.1 percent margin and the $499 4GB model profitable at 50.73 percent in the margins. While these margins are spot on for other iPod products, like the Nano and iMacs, most high-end phones have about 20 percent margins.