The iPad Costs Apple As Little As $229.35 to Build

Illustration for article titled The iPad Costs Apple As Little As $229.35 to Build

The $500 16GB, Wi-Fi only iPad costs Apple less than half that to build, according to a recent component breakdown from iSuppli. And for the 64GB 3G iPad, Apple clears nearly $500 in profit. Here's how it breaks down:

Apple iPad Estimated Bill-of-Materials and Manufacturing Cost Analysis:

Illustration for article titled The iPad Costs Apple As Little As $229.35 to Build

This will no doubt be updated once iSuppli and others are able to do a teardown of an actual device, but those estimated profit margins are pretty stunning, particularly on the higher-end models. iSuppli also points out that the 32GB versions of the iPad only cost $30 more to make than their 16GB counterparts, yet retail for $100 more—a good indication that that's where they expect the sweet spot to be in the market.

Goes a long way to explaining why Apple's so willing to be flexible on the price, no?[iSuppli]

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DISCUSSION

Why is there no costs listed for the Operating System, the Software Apps that are included, the cost of developing, marketing, shipping, advertising, warehousing, warranting, employee costs, taxes, etc. etc. etc.

Microsoft charges over $200 for an operating system that is far less capable than the one on the iPad. Looks to me like they are selling this thing so cheap that they will not be making any profits on the lower priced models.