An article on zdnet.com reported on the findings of engineers at IHS Markit in an investigation of the cost of the components used to produce the A1865 version of the iPhone X with 64GB of internal storage. The engineers found that this iPhone model costs $370 to produce, 63 percent less than its retail price of $999. Does this mean that Apple is making a profit of $629 on each of these iPhone X models? Briefly explain.