Visualizing Apple's (AAPL) Profitability

I guess that every once in a while, Credit Bubble Stocks should post something about hedge funds' favorite stock. Here's an interesting analysis of AAPL earnings, with some key takeaways:

1. The iPhone is huge (57% of gross profits). It is far more important than most people assume. Without it, the company would not have materially grown EPS since 2007.

2. The “Music” which includes iTunes revenues is tiny. Many people assume that iTunes is a large contributor to Apple’s operating profitability but operating margins on the store are 10 percent. Peripherals add more to the bottom line than the iTMS/App Store. The benefit of the iTunes/App Stores is in the hardware sold.

Don't get me wrong - I actually like Apple and Steve Jobs. I just think it's pathetic that this is the top holding of close to 100 hedge funds.