Last year Apple added: Dual Core processor New Design Smart cover magnets Cameras None of these things(beside R&D with the A5) seem like very expensive parts. This year: Retina Display(The cost of this must be huge. AFAIK no such screen is currently shipping in any product.) Quad Core or improved dual core A6( I dont see how this won't be at least as expensive as the A5) Massively improved graphics(implied by the retina display) Significantly better cameras 4G LTE likely Double capacity? (big IF, but with huge apps made for the display, it would seem user friendly.) If Apple retains the $499 price point for the iPad 3, what do you predict their margins will be? Do you think they'll cut cost in some other obvious way(The iPhone 3G had the dock sold separately). I get that Apple has a lot of buying power, but this seems excessive. What are your thoughts?