Despite Weintraub's headline, the chart's own headline makes it clear what the purpose of the chart actually is: "Apple 'iPhone 5' Hypothetical Gross Margin Analysis."

Everything we know about gross margin we learned from this : "Gross margin is the difference between revenue and cost before accounting for certain other costs. ... Margins represent a key factor in pricing, return on marketing spending, earnings forecasts and analyses of customer profitability."

Apple currently sells an unlocked 16GB iPhone 4 for $649 (or $199 through a carrier with a two-year contract). If the chart's components list and associated cost estimates are accurate, then the "iPhone 5" will be about $30 cheaper than the current model.

But for Apple and its investors, the key thing is the margins. Apple's margins have been increasing over the past years, driven by iOS-based sales, as shown in this thorough January .

"The [company's overall] gross margin percent, which measures the direct or variable costs of production vs. price, shows a healthy rise in the last five years from slightly below 30% to around 40%," he writes. "The Operating Margin, which also includes the overhead or fixed costs like R&D and SG&A, shows a similar rise, reaching about 30%."