[Lewisham]

I don't think the firesale was even zero margin; I think it was just cheaper than dealing with the shipping/storage/recycling costs. I expect the hardware cost more to make than they were sold at.

[reemrevnivek]

You're right: According to iSuppli, the BOM for the hardware was about $300.

http://www.isuppli.com/Teardowns/News/Pages/HP-TouchPad-Carr...

[bho]

Yes, I've read some reports about the hardware cost being in the neighborhood of $300. Definitely not zero margin.

[hollerith]

before the iPad 2 came out, I saw an article here that said that an iPad 1 costs Apple about $300 to make.