NPR logo How Much Does It Cost To Build An iPad?

How Much Does It Cost To Build An iPad?

Apple iPad

The thing itself. (AP Photo/Paul Sakuma) hide caption

toggle caption (AP Photo/Paul Sakuma)

A research company called iSuppli took apart an iPad and came up with an estimate of how much the components cost.

The bottom line for the 16-gig iPad, according to the company: $259.60.

The full list of components and prices is pretty cool, in a nerdy way. The processor, manufactured by Samsung, costs $19.50; the battery costs $21.00; the display costs $65; etc.

More broadly, iSuppli says that the iPad turns the traditional cost structure for laptops upside down. The cost of most laptops is driven by the processor and the circuit board (the stuff on the inside). But the iPad costs are driven by the interface — the display, the touch-screen assembly, that sort of thing. Makes sense, when you think about it.

This version of the iPad retails for $499; the markup is comparable to that on other Apple products, Bloomberg News said.



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