While Apple released its newly revamped iPhone 3GS with a lower price tag and gave the iPhone 3G a $100 price reduction, Apple is still enjoying a very healthy profit margin according to a new report.

Turley Muller wrote in a recent report on his financial Blog that Apple reaps a sizeable product margin with the 32GB iPhone 3GS to the tune of 59.6%. He also believes that this massive margin allows Apple to subsidize the cost of other Apple products such as the MacBook.

“Going forward Apple will recognize higher iPhone revenue carrying a higher gross margin,” Muller writes. “As iPhone revenue as a percentage or share of total revenue increases, the impact of the higher iPhone (gross margin) on overall (gross margin) will intensify. This will assuage margin pressures Apple faces in other areas.”

Via: iPhones Talk