iSuppli has tallied up the cost in parts and manufacturing for the various new iPad models, and determined that the 32 GB new iPad with LTE costs $364.35 in materials ($375.10 after manufacturing costs). This is a pretty stark difference to the $729 retail pricetag, but that just goes to show you why Apple is so danged profitable. It's worth keeping in mind that Apple still has to pay to develop software, pay royalties, keep up their retail presence, among other miscellaneous costs, but even then, it's obvious that Apple is enjoying a healthy margin from all of their iPad models.
Of course, that's the what the production iPad costs, not the millions and potentially billions Apple has invested in research, development, prototyping, and in some cases inventing the manufacturing processes that allows these types of devices to be built. But that doesn't make for as provocative a headline, does it?
On the flip side, once Apple does ramp up production and economies of scale start kicking in, it may well be that Apple could afford to knock down the price a little bit, but the $500 has been the starting point for all upper-end tablets since the original iPad launched. Only now are we starting to see decent tablets like the Kindle Fire and BlackBerry PlayBook approach the $200 mark, though even there, older refurbished iPads are within reach. Assuming consumers are happy with the price point for the iPad, maybe Apple can turn over some of those extra profits to those working in Foxconn's factories, eh?
You can take a look at the full breakdown of material costs below.
We may earn a commission for purchases using our links. Learn more.
On Apple and the FBI regarding privacy, from San Bernardino to Pensacola
We compare two of the most high-profile Apple news stories in recent memory.
Apple and Google accused of using market dominance to cripple competition
Sonos, Tile, Basecamp and PopSockets have all testified to a House antitrust committee, stating that big tech firms like Amazon, Apple and Google used their market dominance and bullying business tactics to crush competition.
Apple signs multi-year Apple TV+ deal with Seinfeld's Julia Louis-Dreyfous
Apple has signed a multi-year deal with Julia Louise-Dreyfus, formerly of Saturday Night Live and Seinfeld.
Have an Apple TV? You need a great TV to pair with it
The key to getting a great TV for your Apple TV is by getting a fantastic TV all around! Whether you have a big budget, small budget, lots of space, or no space, there's a perfect TV just waiting to be hooked up to your Apple TV.