Apple to make massive profit on iPads

The bill of materials for the $729 iPad is only $287 – meaning that Apple will make not short of $500 for every unit it sells.

That’s the conclusion of research by market company iSuppli – it doesn’t actually have one to pull apart, so has based its estimate on what it thinks has gone into it.

iSuppli believes the touch screen in the iPad costs $80 for all models, while its A4 processor and memory don’t cost a great deal either.

Of course a bill of materials (BOM) does not represent the whole cost of an iPad. Designing a machine like this is a highly expensive business and you have to factor in the marketing, sales and distribution costs too.

But even given that, there’s a clear message for people that want to take the iPad route. Wait, until the price comes down because Apple has plenty of room to cut prices.