Apple is selling its brand new generation of iPads at a price almost double than the manufacturing costs. According to EE Times, the bill of materials (BOM) is estimated at $310 for a 16GB Wi-Fi + 4G iPad (which carries a price tag of $630) and slightly more for the 32GB model. Previous versions of iPads carried a BOM of $270 and $276 respectively.

The company is set to lose some profit, because of the increase in manufacturing costs of the new iPad.

“The bottom line is the new iPad’s margin should take a little hit because of some expensive adders like LTE, high-res display and camera, a bigger battery and faster processor”, said Jeff Brown, senior analyst at UBM TechInsights.

Reportedly, the new battery that has been packed into the new iPad costs around $30. It is the second most expensive among all the components. By far, the most expensive component is the Retina display, which costs around $70. The A5X processor is the third most expensive component, with manufacturing cost of $28, while the new improved camera costs around $13.