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The iSuppli research group (http://www.isuppli.com) says the iPad costs Apple about US$259.60 to build, reports "BusinessWeek" (http://www.businessweek.com/technology/content/apr2010/tc2010046_788280.htm?).
Materials for the Apple device include a touchscreen display that costs $95 and a $26.80 processor designed by Apple and manufactured by Samsung Electronics, according to iSuppli. The research group's analysis means that the components of the lowest-priced iPad, which includes 16GB of memory, constitute 52% of its $499 retail price, on par with other Apple products including the iPhone 3GS.
A mid-priced 32 GB version of the iPad that sells for $599 contains $289.10 worth of materials. A high-end 64 GB version, which retails for $699, contains components that cost $348.10, according to iSuppli. Much of the iPad's component costs went toward making the device appealing to use, says iSuppli principal analyst Andrew Rassweiler.