Apple is making some pretty good margins on the iPad.  The entry level 16GB Wi-Fi only version nets Apple around $208.00 profit, while the Top 64GB 3G equipped iPad brings in $446.00 profit.

A bill of materials analysis was done by Brian Marshall of Broadpoint AmTech, who found that the entry level iPad costs Apple around $270 to produce.  They may also need to include at least $20 for warranty charges.

Apple’s latest A4 chip was listed at only $15, and the most expensive part was the LCD screen at around $100.  We can see that Apple’s profit margin on the entry level iPad is almost 43%!!  Mr Marshall also found out that the same entry level model with 3G equipped costs only $16 more to produce, yet they charge $130.

Because Apple’s iPad line as a whole nets approximately 50% margin, Marshall called the iPad “another grand slam for Apple,” and changed is 2010 sales prediction from 2.2 million to 7 million.