iPad Component Costs Estimated to Begin at $219.35

150258 isuppli ipad bom

Bloomberg BusinessWeek reports on new estimates from market research firm iSuppli detailing component costs for Apple's lowest-priced iPad at $219.35 plus an additional $10 in manufacturing costs, compared to a retail price of $499. While the component cost calculations do not include such expenses as research and development, software, marketing, distribution, and patent licensing, the tally still suggests that Apple is set to make a healthy profit on its new tablet device.

The most profitable of the six iPads is the 32-gigabyte version with 3G network access, Sideco says. Its combined materials and manufacturing cost of $287.15 amount to 39.4% of the retail price. The least profitable is the 16-gigabyte non-3G version, which sells for $499. Its combined costs amount to $229.35 or 46% of the retail price, leaving the slimmest potential profit margin of the six.

iPad models offering 3G wireless connectivity will carry a $130 price premium at retail over the corresponding Wi-Fi-only models, while iSuppli calculates that the additional cost to Apple is only approximately $27.10 ($24.50 for 3G components and $2.60 for GPS). Other items of interest included in the estimates are the 9.7-inch multi-touch display at $80.00 and the custom Apple A4 system-on-a-chip serving as the brains of the device at $17.00.

A report earlier this week claimed that Apple executives have left the door open to iPad price cuts if consumer demand fails to meet expectations, and iSuppli's estimates appear to suggest that the company may have sufficient profit margin on the device to lower retail prices if necessary.

Popular Stories

6chatgpt mac app

5 Reasons to Use OpenAI's ChatGPT App for Mac

Thursday May 23, 2024 6:07 am PDT by
On May 13, OpenAI during its Spring Update announced that it would be releasing a desktop ChatGPT app for the Mac in the "coming weeks," and said that ahead of a wider launch it had started rolling out the app to some ChatGPT Plus subscribers. Subscribe to the MacRumors YouTube channel for more videos. After testing the app for a few days, we thought it was worth sharing some reasons why...
new best buy blue

Best Buy's Memorial Day Sale Has Record Low Prices on iPads, MacBooks, and Much More

Friday May 24, 2024 7:12 am PDT by
Best Buy today kicked off its Memorial Day weekend sale, and it has some of the best prices we've tracked in weeks on iPads and MacBooks. Specifically, you'll find record low prices on the 5th generation iPad Air, iPad mini 6, M2 MacBook Air, and M3 MacBook Pro. Note: MacRumors is an affiliate partner with Best Buy. When you click a link and make a purchase, we may receive a small payment,...
macOS 15 Feature

macOS 15 System Settings to Get Design Overhaul

Thursday May 23, 2024 12:51 pm PDT by
With the macOS 15 update that is set to debut at WWDC in June, Apple plans to rearrange "menus and app UIs," according to a report from AppleInsider. The System Settings app, which was last updated with macOS Ventura, will get one of the biggest updates. With macOS Ventura, Apple renamed the System Preferences app to System Settings, introducing a design similar to the Settings app on the...
iPhone 16 Pro Max Generic Feature 2

5 Biggest Changes Rumored for iPhone 16 Pro Max

Tuesday May 21, 2024 7:29 am PDT by
Given Apple's rumored plan to add an all-new high-end tier to its iPhone 17 series in 2025, this could be the year for Apple to bring its boldest "Pro Max" model to the table — the kind of iPhone 16 upgrade that stands tall above its siblings, both figuratively and literally. If you have been holding out for the iPhone 16 Pro Max, here are five of the biggest changes rumored to be coming...