New information suggests that Apple's profits from the iPad may be even higher than earlier anticipated. BusinessWeek reports that iSuppli has found that the total material cost of the WiFi iPad is as little as $259.60. This includes a $95 touchscreen display and a $26 processor made by Samsung. In all, the iPad's components make up 52% of its market price.
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The implications of this are substantial. Apple has a lot of wiggle room on that price before it becomes unprofitable. This means we're likely to see a pretty hefty price drop, possibly even later this year. If cheaper competitors start to nip at the iPad's heels, Apple has the option of cutting back on their (already massive) profits slightly to boost sales.