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
(Image credit: 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)

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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%

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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