Real cost behind Apple iPad is $270: Analyst
The newly released Apple iPad tablet retails at $499, but according to an analyst, the tablet device costs Apple about $270 to make.
The cost of the materials inside Apple's 16GB WiFi-only iPad costs $270.50, according to Brian Marshall of BroadPoint AmTech.
Marshall estimates another $10 is needed for manufacturing, but that doesn't include another $20 set aside for under-warranty service costs. Adding the latter makes Marshall's bottom-line total $290.50.
Because that model will sell for $499, Apple's profit margin is 42.9% after the $20 warranty set-aside is factored in.
According to Marshall, the most expensive component on his price list was the 9.7-in. LCD touch-sensitive display, which he tagged at $100.
The 16GB of memory and the aluminum case cost about $25 each, said Marshall, while the Apple A4 chip was listed at $15.
Read More on the Apple iPad:
What's iPad? The Essential Guide
© Copyright IBTimes 2024. All rights reserved.
- MOST POPULAR IN Technology
