Shrygue
February 10th, 2010, 18:33
via Gizmodo (http://gizmodo.com/5468750/the-ipad-costs-apple-as-little-as-22935-to-build)
The $500 16GB, Wi-Fi only iPad costs Apple less than half that to build, according to a recent component breakdown from iSuppli (http://www.isuppli.com/News/Pages/Mid-RangeiPadtoGenerateMaximumProfitsforApple,iSuppliE stimates.aspx). And for the 64GB 3G iPad, Apple clears nearly $500 in profit. Here's how it breaks down:
http://cache.gawkerassets.com/assets/images/4/2010/02/500x_appleipadcostbreakdown.jpg
This will no doubt be updated once iSuppli and others are able to do a teardown of an actual device, but those estimated profit margins are pretty stunning, particularly on the higher-end models. iSuppli also points out that the 32GB versions of the iPad only cost $30 more to make than their 16GB counterparts, yet retail for $100 more—a good indication that that's where they expect the sweet spot to be in the market.
Goes a long way to explaining why Apple's so willing to be flexible on the price, no?
The $500 16GB, Wi-Fi only iPad costs Apple less than half that to build, according to a recent component breakdown from iSuppli (http://www.isuppli.com/News/Pages/Mid-RangeiPadtoGenerateMaximumProfitsforApple,iSuppliE stimates.aspx). And for the 64GB 3G iPad, Apple clears nearly $500 in profit. Here's how it breaks down:
http://cache.gawkerassets.com/assets/images/4/2010/02/500x_appleipadcostbreakdown.jpg
This will no doubt be updated once iSuppli and others are able to do a teardown of an actual device, but those estimated profit margins are pretty stunning, particularly on the higher-end models. iSuppli also points out that the 32GB versions of the iPad only cost $30 more to make than their 16GB counterparts, yet retail for $100 more—a good indication that that's where they expect the sweet spot to be in the market.
Goes a long way to explaining why Apple's so willing to be flexible on the price, no?