$230 but quality control is throwing out 30% of phones now. No other company would do that. Also to pre-order customers they shipped them by air mail across the world from the factory. That costs $30 per phone.
They are selling them for $700 on average since most models are 16GB, or 32GB, meaning that before R&D, opperating costs etc, they are only making 100% profit over cost. Out of the 17.5 billion in profit on 50 million sales per year, they spend about 3 billion per year on R&D and patents (purchases and service fees), plus another 1 billion per year to buy the technology companies needed to give you the latest tech in the iPhone alone (maps, fingerprint scanning, Siri etc), next they have to pay for the warranty which accounts for another 10% of the price, they also offer free training, customer service, phone support etc, all of that cost them 4.5 billion.
In the end only 25% of that $700 is profit. Not 75% as you make it out to be.
AND on top of all that they let you swap your phone for a replacement if you break it for less than their manufacturing cost if you break it. No othe manufacturer does that, you have to buy a new phone.
So yeah I consider that a pretty decent deal.