iPad Parts May Yield High Profits for Apple
Posted on February 3, 2010 by eli courey
According to BroadPoint AmTech analyst Brian Marshall, the low-end $499 version of the new tablet costs about $270 in materials and manufacturing. The most expensive piece of the iPad is the 9.7-inch touch-sensative display, which Marshall says is $100. The highest profit comes from the models carrying the 3G radio. These models cost $130 more, yet the 3G radio only costs Apple $16.
The 16GB of memory and the aluminum case are estimated to cost about $25 each, while the Apple A4 processor chip is put at $15. Plus there is a $10 line item dedicated to manufacturing and another $20 set aside for warranty service costs.