This kind of estimate of cost is just ridiculous. Let's go thru all the "true costs" of an iPad that is not included:
1. iOS development. Yes the basic iOS has already been paid for, but to constantly make updates each new unit pays for some of the ongoing costs of development.
2. Warranty. For every X units, a certain percentage will be broken. So you are in essence paying for a certain percentage of a failed product.
3. Sales/Management at the Store you bought it from. Regardless if it's an Apple Store or a big box store (i.e. Target, Walmart, Best Buy), a portion of the profit from the iPad goes to pay these employees.
4. R&D costs. The more you sell, the less each unit costs in R&D (since R&D is fixed), but trust me this cost is not free. Something like the iPad can be in the millions (possibly 10's of millions) to create.
5. Management / Legal / etc. within Apple that are associated with the iPad for miscellaneous costs. These salaries do not do direct work on the iPad, but are cost centers that have to be paid for by making a profit on the device.
6. Licences. As stated, Apple doesn't own the licenses for everything necessary to make an iPad. They do have to license many items from other companies.
And frankly, we all know that anything but the basic 16GB Wifi model is where Apple makes it's money. The 16GB wifi model is pretty much a break even device (after you figure in the items above). But Apple can do this because they make a ton 'o cash on the rest of them. We all know the 32GB wifi model I ordered does not cost $100 for the extra 16GB of flash memory (even including the very negligible amount of R&D necessary to create this additional model).
