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.
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