Apple iPad 16Gb costs £160 — in parts

The iPad isn’t even available yet, but component costings experts have already worked out how much it costs Apple to manufacture. Although there’s clearly some guesswork involved, iSuppli has calculated that the entry-level iPad 16Gb is assembled from parts that cost a total $229.35.

This figure is obviously some considerable way below the $499 that this model sells for, but it’s important to remember that Apple has to pay more than just a couple of hundred bucks to put an iPad on the shelves.

R&D costs also need to be recouped, manufacturing facilities need to be paid and Apple costs money to run — despite Steve Jobs only drawing a $1 annual salary. Factor in all of these additional costs and that $270 ‘profit’ per 16Gb iPad doesn’t look quite so incredible — though we suspect Apple is still enjoying a generous mark-up.

What’s much more interesting, however, is the estimated parts cost for the iPad 16Gb Wi-Fi + 3G model. This sells for $629, but uses the same set of components as the Wi-Fi model, along with 3G radio and GPS chipsets — these are reckoned to cost £27.50, and yet account for a $130 price hike.

The ‘profit’ margins on each iPad then increase up the range, with the top-end iPad 32Gb Wi-Fi + 3G having the largest — the parts cost $246.15 and the retail price is $829.

Reports over the last few days suggest that Apple is already prepared to adjust iPad pricing to stimulate demand (no surprise there, then) and, if roughly accurate, these component costs show that it has plenty of wiggle room.

Given how cheaply 3G and GPS can be added to an iPad though, we’re still amazed that Apple feels the need to offer six different models — no other part of its product line is this complicated and the line-up seems unduly fussy for such an apparently simple (in intent, at least) product.

Since they’re sold unlocked and unsubsidised, offering three Wi-Fi + 3G models only would make more sense and we wouldn’t be surprised if that’s what happens at some point this year. But lets wait until we can buy one before we worry about that, eh?

[ iSuppli via Gizmodo]