Oh, component breakdowns. How we love ‘em. Let’s talk about the iPad.
The $499 iPad breaks-down something like this:
- Touchscreen – $95
- Apple A4 CPU – $26.80
- 16GB flash storage – $29.50
- Aluminum rear panel – $26.80
- Broadcom Bluetooth, WiFi chip – $8.05
- TI controller chip – $1.80
- Ciruss Logic audio chip – $1.2
All that, combined with other pieces of hardware and bezel parts add up to $260 per iPad. That’s slightly more than iSuppli’s preliminary $229 estimate reported back in early February. The 32GB and 64GB chips of course cost more with the 32GB estimated at $59 and the 64GB chip at $118.
Don’t put too much weight into this estimate as it only accounts to for the cost of the hardware and not the time and resources that went into developing and marketing the iPad. We’ve heard that Apple has been toiling away at this thing for years, but the company doesn’t seem to have any issues selling it so they shouldn’t have an issue making it back.