Cost to build iPad: iSuppli says as little as $229.35

iSuppli, the folks who like to tear down hot products right after they're released, have already come out with a report estimating the manufacturing costs of the various iPad models.

Apple

iSuppli, the outfit that makes it a habit of tearing down products as soon as they're released and splaying out their components for all to see, has already done an analysis of what it will cost Apple to build the $500 base model iPad . Not surprisingly, the number comes in at a good 50 percent less than the sales price--and it gets even better (for Apple anyway) as you move to the 32GB and 64GB models and add the 3G wireless component.

Remember, of course, this is only an estimate of hardware and manufacturing costs and doesn't factor in software, licensing fees, and a rather large promotional budget. That said, if you've ever wondered why Apple doesn't offer memory expansion slots for any of its products, the chart below gives you a pretty good reason why.

Though none of these numbers are confirmed, memory prices are memory prices, and paying $100 extra for something that cost Apple around $30 more (when you go from the 16GB to the 32GB model), is a tidy profit. The sad part is that most savvy consumers know they're getting ripped for adding that extra memory, yet we still do it (yes, I bought a 32GB iPhone).

Comments?

The iPad's estimated bill-of-materials and manufacturing cost analysis, according to iSuppli. iSuppli

About the author

Executive Editor David Carnoy has been a leading member of CNET's Reviews team since 2000. He covers the gamut of gadgets and is a notable e-reader and e-publishing expert. He's also the author of the novels Knife Music and The Big Exit. Both titles are available as Kindle, iBooks, and Nook e-books.

 

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