iPad Parts May Yield High Profits for Apple

Posted on February 3, 2010 by

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.

Source: HardwareCentral

Comments (39)


  1. ObamaPacman says:

    Do you know Microsoft windows costs only $0.27 to make? It means MS has a huge 99% profit margin on their software. Google: windows cost $0.27