Apple Still Making a Killing on New iPad's Pricier Hardware
Here's how it breaks down:
- iPad 16GB Wi-Fi: $306.05 to build, sells for $499 ($192.95 difference)
- iPad 32GB Wi-Fi: $322.85 to build, sells for $599 ($275.15 difference)
- iPad 64GB Wi-Fi: $356.45 to build, sells for $699 ($342.55 difference)
- iPad 16GB Wi-Fi + 4G: $347.55 to build, sells for $629 ($281.45 difference)
- iPad 32GB Wi-Fi + 4G: $364.35 to build, sells for $729 ($364.65 difference)
- iPad 64GB Wi-Fi + 4G: $397.95 to build, sells for $829 ($431.05)
Those numbers include $10.75 for manufacturing costs, and as you can clearly see, Apple's making a tidy profit on each device. Higher end models are more lucrative for Apple to sell, culminating in a $431.05 difference between the selling price and bill of materials (BOM) for a 64GB iPad Wi-Fi + 4G.
Not surprisingly, the Retina display is the most expensive part and runs $87 a pop, compared to $57 for the display used in the iPad 2. The A5X processor is also slightly more expensive and runs $23 compared to $14.20 for the A5 chip. Another big difference between the two generations is the upgraded 5MP iSight camera in the new iPad, which along with the FaceTime camera adds $12.35 to the BOM compared $4.10 for the crappy cameras used in the iPad 2.
Is it worth it? Stay tuned: We'll answer that question and more in an upcoming review of the new iPad.
