According to recent analysis of the parts Apple’s using in the iPad… it could cost them as little as $270 to build the base model of the iPad. There are also manufacturing costs and warranty costs estimated at $10 and $20 respectively. That’s still pretty darn good. They’ll make a lot of profit off of me when I buy the 64GB version. :) In fact, each level you go up, Apple’s making exponentially more profit. There’s a cost difference of $75 between the 16GB and 64GB Flash chips, but Apple’s making an additional $125 from us making that jump. They make even more money if I opt for the 3G version: the 3G addition costs Apple $16, but we’re passed a heavy markup in the company’s extra charge of $130. Apple typically sets the price increments as $100 each level, but this is just asking us to question the price of the device itself.

Think of it this way… if I buy the default 16GB iPad WiFi, Apple’s profit is $200. If I go for the fully-loaded 64GB iPad 3G, Apple actually profits $440.

Wall street will love this device. Apple’s stock price has been slowly but surely increasing since this information was released. If this device takes off, we expect to see ridiculous amounts of profit from Apple. Ridiculous.

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