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iPad components cost at least $259

While some people like the mystery, others like to know what they are getting for their hard-earned dough. If you recently picked up a 16GB iPad, putting down $499 for the device, you'll be pleased to know that your shiny new device is made up of parts costing at least $259.

While some people like the mystery, others like to know what they are getting for their hard-earned dough. If you recently picked up a 16GB iPad, putting down $499 for the device, you'll be pleased to know that your shiny new device is made up of parts costing at least $259.

These estimates come from research firm iSuppli. Put another way, this means that some 52% of the cost of a brand new 16GB iPad is down to the components packed into the device. This percentage is similar to other Apple products, such as the iPhone 3GS.

The research firm estimates that the screen costs $95 and the CPU another $26.80.

But the more you spend, the less you get. The 32GB iPad, which retails for $599, or $100 more, only has $30 more components, bringing the total to $289. A 64GB iPad, retailing for $699, contains some $348 worth of components. The storage chips, bought from several suppliers including Samsung, account for $29.50 in costs on the 16 GB model, $59 on the 32 GB model, and $118 on the 64 GB model

Other chips include:

  • A Broadcom chip worth $8.05 that handles Bluetooth and WiFi
  • Two more Broadcom chips used to control the touchscreen, which cost a combined $3.70
  • A Texas Instruments chip costing $1.80 used to control the iPad's touchscreen
  • A Cirrus Logic audio chip that costs $1.20

Over time, the prices of the components should fall, so Apple will make even more profit from each sale.

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