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 introduces Apple's iPad](https://cdn.mos.cms.futurecdn.net/fFioJ9q6xGrKDiNqTLNVVk-415-80.jpg)
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:
Retail price on release: $499 (16gb version)
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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%
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%
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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