For comparison, Nokia’s Lumia 900 phone costs $209 to make and sells for $450 in the US.
On top of that, Apple makes a good amount of money on the App Store that comes with all iPhones as well.
But, that doesn’t tell the entire story. Nobody really knows how much money and man hours went into research & development to actually design and come up with the iPhone 4S in the first place, so even though Apple might be getting a $459 profit per iPhone (before tax etc), they still need to cover their initial costs (R&D), plus of course costs to transportation, salaries etc.
All in all, the iPhone 4S is a damn good device