Research firm puts $499 iPad costs at $259.60

April 7, 2010 By ANDREW VANACORE , AP Business Writer

(AP) -- The iPad may promise a computing revolution, but Apple's new gadget is also a pile of glass, metal and electronic innards - $259.60 worth, or about half the retail price, according to an independent estimate released Wednesday.

After taking the iPad apart and adding up the estimated costs of the components, the research firm said the low-end version of Apple's new gadget costs about $250.60 in parts. Manufacturing costs $9 more. Combined, that's 52 percent of the $499 price for that model.

That doesn't mean Apple's making a nearly 50 percent profit. There are development costs, marketing and other factors to take into account. didn't immediately return a request for comment.

ISuppli's analysis does offer some sense of what you're paying for.

A lot of the cost, it turns out, is that sleek, user-friendly . Each iPad contains an estimated $109.50 worth of components that provide the user interface, or about 44 percent of the total cost of the parts. For instance, just the glass display, which measures 9.7-inch diagonally, costs $65.

Second in cost in the low-end, 16-gigabyte version is the memory, which runs about $30. Then comes the battery for $21.

Apple began selling the on Saturday starting at $499. Versions with more memory run $599 and $699, and the company plans to start selling models with cellular wireless capability later this month, starting at $629. The versions now out offer only Wi-Fi wireless connections.

Explore further: Report: Amazon's $359 Kindle 2 costs $185 to make


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not rated yet Apr 08, 2010
wish I could buy 9.7 in touchscreen displays for $65.

On the market, big surprise, these can be had for maybe 400% or more of this price.

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