Most Street observers are seriously underestimating the amount of money the iPhone is generating for Apple, claims Societe Generale analyst Vicent Rech. Rech notes that while a number of analysts are accounting for Apple's two-year amortization of iPhone revenues, they are often ignoring profitability trends. Current gross margin on the iPhone is believed to be 60 percent, nearly double the 33 percent for the rest of Apple's businesses.
