Apple IPad Parts Cost as Little as $219, ISuppli Says

Wednesday Feb 10th 2010 by Staff

Market research firm ISupply says that while Apple is charging $499 for the lowest-priced iPad, the parts to make the device only cost about $219.

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. “There’s certainly a decent amount of headroom in there,” said ISupply analyst Francis Sideco. “If they had to reduce the retail price, they certainly could.”

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