New estimates from iSuppli suggest the 16GB, non-3G iPad carries a Bill of Materials (BOM) cost of just $219, with manufacturing costs estimated to be $10, bringing the total cost of the low-end machine to $229. According to the report, the mid-range version of the iPad, with 32GB of memory and 3G wireless capabilities, will carry a BOM of roughly $276, making it the most profitable member of the family on a percentage basis. iSuppli believes that the display and touchscreen interface costs $80 per unit, making it the most expensive component of the 16GB and 32GB models, and second only to the 64GB of NAND flash memory—estimated to cost $118—in the top-of-the-line model. Other component estimates include a cost of $17 for the A4 processor, $24.50 for wireless components, and $17.50 for the battery. Notably, iSuppli’s estimates are based on the cost of components expected to be used in the iPad, and not on an actual teardown of the device, nor do they include other expenses such as software, royalties, and licensing fees.
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