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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

In 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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