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)
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
SUBSCRIBE & SAVE
Sign up for The Week's Free Newsletters
Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.
Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.
Latest Videos FromThe Week
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
