iPad 2 Production Cost: $330

According to a detailed review by DigiTimes it appears that the components to produce the iPad 2 is around $320. And when you add in manufacturing costs of $10, the iPad 2 runs $330. An interesting fact is that the A5 chip powering the iPad 2 is 75% more expensive than the A4 supplying the first generation iPad.

The overall bill-of-materials for the different iPad 2's are as follows:

The iPad 2 battery is slightly more expensive, likely due to being thinner yet with the same performance as the original iPad. The prices of the iPad 2 remained the same as the original iPad, leaving less margin in the price of the iPad to the production costs. Below is a table showing the margin build into the different iPad 2 models.

Here are a list of some of the key components and their prices:

• Display/Touch Screen - $127
• Memory 32GB model - $65
• Enclosure - $35
• Battery - $25
• Baseband/RF/PA $18.70 for AT&T model, $16.35 for Verizon
• Application Processor (A5) - $14
• User Interface - $11.90 (Gyro, Accel, Compas, Ambient light)
• Camera - $4.30