iSuppli Corp. reported that the multi-touch 9.7-inch display on the iPad could cost around $80, while its custom-designed A4 processor would cost about $17 per unit. The 16GB of memory is estimated to cost about $29.50.

Total parts cost would be $219.35… well below the starting price of $499 for the 16GB iPad. Manufacturing costs add just $10 to the total cost of the low-end model, bringing it to $229.35.

The findings support the rumors that Apple could lower the price of the iPad if initial sales are not as strong as the company hopes. Well if this is true… A part of me hopes the iPad won’t sell as much as anticipated ;)