Trivia: iphone rated the most profitable product in America

[TheForce]

Market watch rated the most profitable products in America and iphone took the number one spot.

1. iPhone

Operating margin: 40%

Revenue: $80.5 billion

Market share: 20.9%

Industry: Computer hardware

The iPhone is by far the most successful product Apple Inc. (AAPL) sells. Of the company's $156.5 billion in worldwide sales in 2012, $80.5 billion came from the iPhone alone. Apple sold more than 125 million units last year, a 73% increase from 2011. In contrast, Apple sold 58.3 million iPads that year, generating just $32.4 billion in gross revenue. Each iPhone is far more profitable than each iPad, the company's second best-selling product. According to documents released as a result of the patent lawsuit between Apple and Samsung, Apple's gross margins on the iPhone were between 49% and 58% from April 2010 to April 2012, nearly double that of the iPad. This is partly because of larger revenue due to carriers that subsidize the iPhone heavily--an average of $425 per unit according to a recent Stifel Nicolaus analysis. Because of this fact, 24/7 calculates the iPhone's profit margin is 40%--even higher than the entire company's 35.3% margin.

So, who took the number two spot? I would have never guessed but it was Marlboro cigarets, sold by Altria

2. Marlboro

Operating margin: 30%

Revenue: $19.0 billion

Market share: 42.6%

Industry: Tobacco

Marlboro cigarettes are sold by Altria Group, Inc. (MO) in the U.S., and by Philip Morris International (PM) --which Altria spun off roughly five years ago--outside the U.S. Marlboro-branded cigarettes have made both companies extremely profitable. Altria's sales of smokable products totaled roughly $22.8 billion in its most recent full year, 90% of total company revenues, of which 85% of units sold were Marlboros. Altria's smokable products unit has an operating profit of 28%. Because Marlboro is one the company's strongest and best-selling brand, it is 24/7's estimate that costs to produce the cigarette are lower and average price charged is higher than the company's discount cigarette lines. As a result, 24/7 Wall St. estimates the cigarette has an operating margin of at least 30%. BrandZ calculates that Marlboro is the world's seventh most valuable brand at $73.6 billion.