They priced the A4 chip at $15, which sounds awfully aggressive to me.  That's what you'd expect for a mass market chip for a item you buy in quantities of hundreds of thousands <i>after</i> all the kinks are worked out in the fab.  This is a custom job, which hasn't sold anything yet.  It will only get to that <i>if</i> the iPad sells huge numbers.<p>And obviously none of that includes the engineering costs to produce the chip in the first place.