Apple iPad Parts Cost $219
Apple stands to make very good profits on its newest product, the iPad. According to market research firm Isuppli Corp, the components used to make the iPad may cost as little as $219.35. The most expensive part is the touch-screen display, which costs $80. The processor, designed by Apple and made by Samsung, costs $17.
Even the cheapest iPad—the 16 GB model—may be too expensive for many consumers. It is priced at $499. But thanks to the low cost of iPad components compared to the price of the device, Apple does have room to lower the retail price if it needs to.
The research firm, Isuppli, conducted what is called a teardown analysis of the iPad. The firm did not have an actual iPad, so it had to rely on Apple’s public statements about the device. The difference in prices of the iPad is due to memory. 16 GB of flash memory costs $29.50, 32 GB costs $59, and 64 GB costs $118. The most profitable iPad for Apple is the 32 GB model with 3G access, whose materials cost 39 percent of the retail price. The least profitable is the 16 GB version without 3G, whose materials cost 46 percent of the price.
Via BusinessWeek, image via Apple.
