- Associated Press - Thursday, March 29, 2012

While Apple Inc.’s relationship with Hon Hai Precision Industry Co. gets a lot of attention, the Taiwanese company accounts for only a fraction of the cost of each device it assembles.

The Chinese factories of Hon Hai, also known as Foxconn, put together iPhones and iPads, but high-cost components like chips and screens come from a range of U.S., Taiwanese and South Korean companies.

Research firm IHS iSuppli provides the following cost breakdowns:

_Basic iPhone 4S

Price: $199 with two-year contract

_Cost of components

Memory chips: $28.20

Touch-sensitive display screen: $37

Wireless chips: $23.54

Camera: $17.60

Total cost of materials: $188

What it costs Apple to have the basic iPhone assembled in a Foxconn plant: $8

_Basic iPad

Price: $499

_Cost of components

Memory chips: $30.70

Touch-sensitive display screen: $117

Battery: $32

Total cost of materials: $306

What it costs Apple to have the basic iPad assembled in a Foxconn plant: $10

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