iPad Breakdown: What's Inside and What it Costs to Make

A look deep into the electronic guts of Apple's new iPad has revealed that the basic version of the device costs about $260 to manufacture, according to the research firm iSuppli.

The company recently dissected the iPad in a so-called teardown analysis to find out just what makes Apple's much-heralded tablet computer tick. The teardown shows how the underlying structure of the iPad befits its purpose as a user-friendly, media-devouring device.

Accordingly, and as expected, much of the cost of building an iPad appears related to ensuring it is easy on the eye and simple and fun for people to operate. (Read more iPad news.)