It’s become something of a ritual for some. Apple releases a new device, be it iPhone or iPad, and then someone waits patiently to get their hands on it with the sole aim of ripping it apart. It’s a regular assurance these days, and the new iPad has suffered the same fate as its brethren.

This time around, amongst others, IHS iSuppli got their hands on a new iPad and set about doing the only honorable thing: ripping it apart with the sole aim of trying to figure out just how much one of these things costs to make and, thus, how much the device is adding to Apple’s world famous bottom line.

The answer very much depends on the model sold, but regardless, Apple is indeed making plenty of profit on each iPad sold…

Unsurprisingly, that new Retina Display does not come cheap. Being provided by Samsung initially, and with Sharp and LG rumored to also come on board, that display could cost Apple as much as $90 depending on the manufacturer and volume. That may not sound a lot, but it’s potentially nearly a quarter of the finished tablet’s retail value.

When it comes to the low-end 16GB WiFi iPad, Apple has to fork out around $316 to produce the tablet, with the retail price being set at $499. This, according to iSuppli, means that Apple is looking at around 37% profit. As the retail price increases, so does the profit. The 64GB 4G iPad retails at $829 yet costs $409 to make. That’s a profit of 51% for those playing along at home.

Based on those numbers, Apple will no doubt be hoping we all buy the top of the range model, rather than the bottom of the range WiFi-only iPad. No surprises there, then.


  • apple is ripping us off!

    • I’d like to see you make an iPad

    • Anonymous

      ripping us off.??????? u should look at other tablet makers r ripping people of making cheap worthless products that dont work. u just dont know how to tell the difference

    • Anonymous

      cuz you can’t get an Apple.

  • Go to AppStore
    Download Juno wallet
    Sign up and put the code HB830306
    Get the $25 iTunes card

    • Fag this is fake only get 0.25 cents! -.- Please consider your account as blackmailed as junowallet clearly says u can’t give out false information to people for entering your account number!

      • Kok Hean

        You don’t say?

      • What are u talking about?’ I don’t say what? 😛 makes no sense to me sorry..

      • Anonymous

        You just 9Gag to much.

  • Sadly that’s why you only buy the brand.

  • Do they really need to do this? Why not give everyone on earth an iPad, and watch the profits come in as people buy music, apps, movies, etc. like freemium apps. I just want a free iPad lol.

  • Is it weird that I spent more time looking at the picture then I did reading the article?

    • Anonymous


    • What article?

  • The profit does not end there, put in the apps they create, icloud upgrade and others, they are making big profits

  • Anonymous

    I would speculate that at the volumes and manufacturing contracts that Apple has, their cost is probably much lower than this article speculates.

    Most retailers are going to want a better mark up for profit than just 37 – 50%.

    However, I do believe the cost difference between the low end, 16GB WiFi model and the high end 64GB 4G iPad is probably pretty close.

  • Those percentages only apply for US sales. In the UK alone the 16GB WiFi only iPad retails at 499 GBP, which is about $620 if I’m not mistaken. In other European countries there more expensive, so even more profit…

    • Yes, you are mistaken. $789.
      *jaw drop*

    • isn’t that extra money going to the government for tax?
      i’m paying 12% tax on every apple product here in canada.
      and i believe that’s not going to apple.

  • And those parts and figures might even be cheaper.. When you order millions of chips they could cost just pennies jus for a single chip and or part, pennies on the dollar. Wholesale/ resale