I Can Get It For You Wholesale: What The iPad REALLY Costs To Build

This image described by iPad, Apple, iSuppli, Ipad_hero_20100127

Bet YOU'd like to spend only US$259.00 for a 16 GB Wi-fi iPad, wouldn't you?

According to research firm iSuppli, that's the approximate cost of all the parts that go into Apple's shiny new toy.  Here's the breakdown:

• $95 for the touchscreen display
• $26.80 for the Apple-designed, Samsung-built processor
• $29.50 for 16GB of memory
• $10.50 for the aluminum back

So the components alone comprise 52% of the unit's US$499 MSRP — which, according to iSuppli, is actually on a par with other Apple devices.  Also, the RAM price is going to roughly double at the 32 GB and 64 GB points.  Obviously, this doesn't include things like labor, R&D, software development, advertising, shipping, etc.

iSuppli principal analyst Andrew Rassweiler, who oversaw the iPad teardown, estimates that most of the component costs went towards making the device appealing to use; the touchscreen alone (including power and interface) took up 40% of the base material cost.

Neither Apple nor any of the component manufacturers chose to comment on the story.

[Via Business Week]

Tags: , ,

About Dactyl Anapest

Google + Profile