The BoM for the iPad is around $259.
(http://www.electronicsadvocate.com/2010/04/08/ipad-bom-is-25...)
Apple buys a majority of all touch panels and flash memory manufactured as well as highly optimizing the design and integration of the hardware.
The game console model would mean Apple loses money on the hardware, hoping to make it up in sw sales/fees. Obviously this is NOT the case.
Your comment is awaiting moderation.
