The new iPad, equipped with 32GB of NAND flash memory and 4G LTE wireless capability, carries a bill of materials (BOM) of US$364.35, according to a teardown analysis by IHS iSuppli. When the US$10.75 manufacturing costs are added in, the cost to produce the new iPad rises to US$375.10. The BOM of the 16GB 4G LTE version amounts to US$347.55, and the 64GB version is estimated at US$397.95.
The US$364.35 BOM represents 50% of the US$729.00 retail price of the 32GB LTE version of the new iPad, IHS said.
The very lowest-end version of the new iPad, with 16GB memory and no LTE, carries a combined BOM and manufacturing cost of US$316. The highest-end model, with 64GB memory and integrated LTE, has a total BOM and manufacturing expense of US$408.70, the teardown revealed.
New iPad more expensive to manufacture
Posted on Tuesday, Mar 20 2012 @ 16:47 CET by Thomas De Maesschalck
A teardown of the new iPad by IHS iSuppli reveals Apple has lower margins on its third-generation iPad. The new tablets are offered at the same price points as their predecessors but have a higher production cost. The research firm estimates the new iPad with 32GB NAND flash memory and 4G LTE wireless capability has a total manufacturing cost of $375.10, nearly 9 percent more than the iPad 2's manufacturing cost at time of launch. However, considering that these tablets are sold for $729, the profit Apple is making off these tablets is still very high. Full details regarding the bill of materials (BOM) can be read at DigiTimes.