iPad’s A4 processor costs $26.80 each, says iSuppli

April 7, 2010

A new iPad tear down states that Apple’s 16GB Wi-Fi only tablet costs just $259.60, before development and marketing costs, or about half percent of the retail price with the most expensive component being the device’s drool worthy touch panel display at $95.

A new Apple product has shipped and iSuppli is johnny on the spot with a tear down and cost analysis. The market research firm claims that it costs Apple $259.60, or about 52 percent of the suggested retail price, to build the 16GB Wi-Fi only iPad, a proportion in line with the iPhone 3GS.

And, of that total, about 10% covers the cost of Apple’s highly regarded A4 mobile processor.

“We believe that this chip was designed by PA Semi,” said Andrew Rassweiler, principal analyst. “But the markings make it look like a Samsung chip.”

      • Touchscreen display, $95
      • A4 processor (Samsung), $26.80
      • Aluminum back, $10.50
      • 16GB Flash memory, $29.50
      • 32GB Flash memory, $59.00
      • 64GB Flash memory, $118.00
      • Broadcom networking chip, $8.05
      • Other network chips, $3.70
      • Touchscreen display, $95
      • Touchscreen controllers, $3.00

Of course, iSuppli’s 16GB iPad $259.60 cost estimate doesn’t include product development and marketing costs, which are likely quite significant for new product at least three years in the making. However, with time as Apple sells for more iPads, the marginal costs of these inputs will fall away to nearly zero (i.e. the iPod classic).

See any surprises in iSupplie’s analysis? Anything they’re saying seem way out of line…

What’s your take?

via Bloomberg

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