How much does Apple spends on the iPad hardware?
Recently introduced AppleTV has the A4 chip along with wireless chip and 8GB flash memory. This teardown at iFixit shows the internals of this device is very similar to an iPad.
This implies that except the display and associated driving chips, Apple’s cost on iPad could be way below $99. There are median of several estimates for the cost of iPad display is about $150.
With announcements of other tablet devices, Apple could really take them on the price game. They already have immense purchasing power in flash and display market.
Apple could most probably stick with current prices and add more powerful chips. We could see the iPod story repeat in the tablet market.