"Their margins are insanely high (35–40%)." I haven't looked at Apple's 10-K ... ever. But assuming you are talking about net profit margins - yes that is crazy high, but not completely out of the question for vertical distribution companies. They run their own stores and 30% of their revenue comes from their stores, brick and mortar and online. If they weren't showing that level of net profit margins, I'd be even more concerned.