A report by UBM TechInsights reports the Apple iPad 2's A5 processors costs about $25 to manufacture, making it $10 more expensive than NVIDIA's Tegra 2.
According to research performed by UBM TechInsights, Apple's larger A5 (12.1mmx10.1mm, compared to the 7.3mmx7.3mm A4) costs about $25 to build, making it $10 more expensive than similar dual core chips such as the Tegra 2 used by the Motorola Xoom.
Even so, the firm estimates the iPad 2 total Bill Of Materials costs about $270, compared to its BOM estimate of the Xoom, which weighs in at $288 (both numbers compare 32GB 3G versions).
"To help with their margins," UBM engineer and technical marketing manager Allan Yogasingam told AppleInsider, "this basically guarantees the A5 will be in most next generation Apple products like the iPhone 5 and the iPod Touch. It will help bring the costs down to the $15 range of their competition - especially if they have a plan in place to ramp up production through another fab like TSMC."