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iPad cost breakdown: Good deal?
Manufacturing and materials costs for Apple's new $499 device are just $259.60. How does that compare to other tech devices?
Steve Jobs announces the iPad.
Steve Jobs announces the iPad.
Bloomberg
I

n all the hype over the Apple iPad, you'll likely have discovered that the price of the fabled device starts at $499. But how much does it really cost Apple to buy the materials and manufacture the device? Just $259.60, according to research firm iSuppli. However, as iSuppli's comparitive data on other tech devices reveals, the mark-up on an iPad is relatively low:

Apple iPad
Retail price on release: $499 (16gb version)
Cost of manufacturing and materials: $259.60
Most expensive single component: The display screen ($65)
Apple's costs as percentage of retail price: 52%

Apple iMac Core Duo desktop computer
Retail price on release: $1,299
Cost of manufacturing and materials: $898
Most expensive single component: Microprocessor ($265)
(These estimates do not account for keyboard or mouse)
Apple's costs as percentage of retail price: 69%

Apple iPhone 3G
Retail price on release:
$499 (of which AT&T pays $300)
Cost of manufacturing and materials:
$173
Most expensive single component:
8gb flash memory card ($22.80)
Apple's costs as percentage of retail price:
34%

Palm Pre

Retail price on release: $300 (of which Sprint pays $100)
Cost of manufacturing and materials: $170.02
Most expensive single component: Touchscreen ($39.51)
Palm's costs as percentage of retail price: 56%

Google Android
Retail price on release:
$599
Cost of manufacturing and materials:
$187.75
Most expensive single component:
memory card ($35)
Google's costs as percentage of retail price: 31%

All figures from iSuppli

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