Apple iPad Component Costs now Estimated at $260

Back in February a company called iSuppli made estimates on how much each model of the Apple iPad would cost to make. From the report we found that potentially the 32GB WiFi+3G iPad could be the most profitable for Apple [AAPL]

Now that the iPad has launched, iSuppli have made some amendments to the numbers due to being able to get their hands on an actual iPad to see what exactly is inside.

The report now indicates that the 16GB Wi-Fi only iPad model will cost $259.60 vs $229.35 that was originally estimated. Reasons for the increase in component costs is due to more silicon chips being used than expected. For example, the touchscreen requires three chips to function correctly.

The increase is around $30 for the base model. The screen also was bumped up from $80 per device up to $95 per device after closer inspection of the hardware.

The custom built A4 processor also was bumped up in price by around $10 due to that being more complex than previously thought.

Although we will probably never know the full actual costs of creating an iPad due to not knowing specifically the deals that go on between Apple and other companies involved in making the processors, screens and all other related technology, we can only go on these sorts of estimates.

Either way, this latest report does show that you are indeed getting more for your money I guess. [Apple Insider] [Business Week]

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