iPad costs Apple just $270

BroadPoint AmTech analyst Brian Marshall calculated the real price of the Apple iPad. His numbers are based on the price of all components.

The flash memory and the aluminum case both cost about $25, while the Apple A4 processor is just $15. The total cost for 16GB Wi-Fi iPad (US$499) is just $270.50. Manufacturing adds $10 and warranty service costs add up to $20.

Thr 32GB and 64GB Wi-Fi models add even more margin. The 32GB model costs only $25.50 more than the 16GB, but the suggested retail price is $100 more. Apple will really make money on the 64GB model, which costs $76.50 more than the 16GB device but sells for $200 more.