Report: The iPad Air is Cheaper to Manufacture Than the iPad 3

iPad Air

Companies are always trying to cut the cost of manufacturing while maintaining a high profit margin.

Apple has managed to cut the cost of building the iPad by about 13 percent, according to are report from IHS Supply. It’s an estimate, but it looks like Apple spends between $274 and $361 to build each iPad (this depends  on the model, too.)  This comes out to about $42 less than the iPad 3 did last year.

That said, this is only an estimate based on parts. As MacRumors explains, this does not include additional costs, such as product development, R&D (good thing Apple doesn’t spend much of its money on R&D) and manufacturing.

Yup. Lots of money to be made there.


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