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?

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)
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
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
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Why are student loan borrowers falling behind on payments?
Today's Big Question Delinquencies surge as the Trump administration upends the program
By Joel Mathis, The Week US Published
-
Not there yet: The frustrations of the pocket AI
Feature Apple rushes to roll out its ‘Apple Intelligence’ features but fails to deliver on promises
By The Week US Published
-
George Foreman: The boxing champ who reinvented home grills
Feature He helped define boxing’s golden era
By The Week US Published