Apple’s low-end Intel-powered iMac costs approximately $898 to manufacture, according to tear-down analysis by iSuppli.

DigiTimes reports the analysis doesn’t include the cost of the keyboard, mouse, administration, research or sales cost, or any transportation. The product retails at $1,299.

The analysis reveals Apple’s use of an Intel mobile 945 core-logic chipset ($45) in support of the $265 Core Duo processor, said iSuppli.

Apple has itself confirmed its use of an Intel chipset (the north- and south- bridge data controllers). Graphics are supplied by ATI in the form of a Radeon X1600 GPU.