IPad Cost Estimate Boosted, Thanks to Display

ISuppli, one of the best-known firms that tears apart new devices to study their components, has boosted its estimate for Apple’s (AAPL) cost to make the iPad. The display is a big reason.

The company in February had projected that the least-expensive iPad cost Apple $229.35 in components and manufacturing costs. ISuppli on Wednesday upped that estimate to $259.60.

Andrew Rassweiler, director and principal analyst and teardown services manager for iSuppli, says the company had assumed the display in the new device was quite a bit like those found in laptops and netbooks. After seeing the iPad’s performance and taking the device apart, however, iSuppli engineers revised their opinions. “It turns out that is a lot more expensive than we thought,” he says.

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