go-Digital Blog on Digital Marketing

The iPad Costs Apple As Little As $229.35 to Build

Source: http://feeds.gawker.com/~r/gizmodo/full/~3/s–4hn9Lyuk/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. And for the 64GB 3G iPad, Apple clears nearly $500 in profit. Here’s how it breaks down:

Apple iPad Estimated Bill-of-Materials and Manufacturing Cost Analysis:
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?[iSuppli]

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