iSuppli teardown iPad, estimates $260 cost to Apple

iSuppli, the guys known for their teardown research on latest gadgets, have estimated that the iPad costs $260 to build the 16GB WiFi model. The company claims that it costs only 52% of its retail price to build the lowest version of iPad. The high-end model with 64GB memory which retails at $699, costs $249.

Here is a quick look at the cost breakdown by iSuppli –

  • Touchscreen = $95
  • Memory. 16GB = $29.50; 32GB = $59; 64GB = $118
  • Processor = $26.80
  • Aluminium casing = $10.50

Around 40 percent of the iPad’s cost goes in powering the multi-touch screen and the UI components, says iSuppli analyst Andrew Rassweiler. It was also alleged back in February that Apple would lower the pricing of the iPad in case it doesn’t reach the predicted sales numbers. But after the response seen during the opening sales, we don’t think Apple would have to do that any more.

via [AppleInsider]