The Iphone Blog

Gene-Munster with analyst firm Piper-Jaffray have issued a note to investors about the tablet, saying that they don’t actually expect many units in 2010, and they forecast the device to cost between $500 and $700. That would put it squarely between the iPhone and low-end MacBooks in price.

However, the calculations used to hit that number are more than a touch suspicious. The report says ”As a point of perspective, iSuppli has reported the bill of materials on the iPhone 3GS is $179. Backing out the phone functionality, we believe the bill of materials is about $160. Assuming the tablet is 3x the size of the iPod touch implies a bill of materials for the tablet of around $480.” However, anyone who’s been TV shopping knows that you can’t linearly shift the price to account for the size. An 84-inch TV isn’t twice the price of a 42-inch. Screen price increases dramatically with size, especially with OLEDs, which rumors point to the iTablet having.

[via AppleInsider]

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