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iPad Parts May Yield Tidy Profits for Apple

Feb 02, 2010, 03:03 (2 Talkback[s])
(Other stories by Andy Patrizio)

"Apple's recently launched iPad could yield a tidy profit for the company thanks to its relatively low cost for parts, if an analysis of the components proves accurate.

"According to BroadPoint AmTech analyst Brian Marshall, the low-end $499 version of the new tablet costs about $270 in materials and manufacturing.

"Marshall concluded the most expensive piece in the iPad's bill of materials (BOM) is the 9.7-inch touch-sensitive display, which he put at $100. Apple's (NASDAQ: AAPL) most profitable item, meanwhile, is the 3G radio: Models carrying the unit cost $130 more than those without, while it only costs the company $16."

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