Report: iPad cost Apple $260 to build

Posted by Aharon Etengoff

An analysis conducted by ISuppli Corp has found that Apple's iPad tablet cost the Cupertino-based company approximately $259.60 to manufacture.

According to Bloomberg, materials for the recently unveiled iPad include a $95 touch-screen display, along with a $26.80 processor designed by Apple and manufactured by Samsung Electronics.

Apple iPad"Analysis by ISuppli indicates that components of the lowest-priced, 16-gigabyte iPad amounts to 52 percent of its retail price of $499," wrote Bloomberg's Arik Hesseldahl.

"That leaves the iPad on par with other Apple products, including the iPhone 3GS. A high-end 64-gigabyte version of the iPad, which retails for $699, contains components that cost $348.10."

Meanwhile, ISuppli principal analyst Andrew Rassweiler noted that the majority of the iPad's component costs were allocated to making the device attractive to potential users.

"More than 40 percent of the iPad's cost is devoted to powering its touch-screen display and other components of the computer's user interface - what you see with your eyes and what you feel with your fingers," he added.