I showed that a company can buy those chips, put them on boards, package them, ship them in tiny quantities, market them, and support them for a total cost of $20.

How much do you think those things cost? They all need to be subtracted from the $20, and also Apple can probably get a better wholesale deal than the brand I was looking at.

I'm not saying $10 is definitely right, but I think it's a pretty good guess.