BusinessWeek: $219.35--that's how much market research firm ISuppli says that it costs to buy the parts to make an iPad. That's less than half the device's retail price, which starts at $499 for the least-expensive model.
Analysts note that the low price of parts give Apple quite a bit of flexibility on pricing, if the iPad doesn't sell as quickly as the company hopes. Theres certainly a decent amount of headroom in there, said ISupply analyst Francis Sideco. If they had to reduce the retail price, they certainly could.