A teardown analysis of HP's iPad 2 rival, the TouchPad, shows that the tablet carries a bill of material of $318 based on preliminary results from IHS iSuppli's Teardown Analysis Service.
Most of the cost of manufacturing is borne by the display/touchscreen which accounts for well over a third of the total BoM of the tablet at $130.50, with the display - from LG - accounting for roughly half the amount and the touch screen mechanism accounting for the other half.
The teardown also revealed that the 1GB system memory from Samsung, cost $26 while the 16GB NAND flash memory added $23 to the initial cost (going up to 32GB adds another $22) and the processor, the Qualcomm Snapdragon APQ8060, another $20.
Interestingly, the Touchpad uses Wi-Fi components from Qualcomm/Atheros and could easily swap integrated baseband chips when HP decides to add 3G/4G to the tablet.
In total, when the cost of manufacturing is included, the 16GB version fetches $306.15 while the 32GB one reaches $328.15, leaving HP with a growth margin of 63 per cent and 52 per cent respectively.
HP apparently deliberately made the Touchpad thicker than the iPad, a move that provided it with more design options and more leeway, which iSuppli added meant simplifying the design process altogether.