(AP Photo/Paul Sakuma)
Dow Jones Newswires | It costs Apple Inc. $259.60 to manufacture its iPad tablet computer, according to iSuppli Corp.’s tear-down analysis, reported on by Bloomberg News Wednesday.
The market-research firm’s analysis indicates that components of the lowest-priced, 16-gigabyte iPad amount to 52% of its retail price of $499. A high-end 64-gigabyte version of the iPad, which retails for $699, contains components that cost $348.10, according to iSuppli.
More than 40% of the iPad’s cost are devoted to powering its
touch-screen display and other components of the user interface.
Materials include a touch-screen display that costs $95 and a $26.80
processor designed by Apple and manufactured by Samsung Electronics Co.
The aluminum casing on the back of the device contributed cost of about
$10.50.
Bloomberg said Apple spokeswoman Natalie Harrison declined to comment on
ISuppli’s findings.
Yeah it maybe cheap to build – but what about the millions spent on marketing it – we all know apply is a marketing leader in consumer products – they need to keep the lights lit for all those R&D guys! So yeah i can see why they need such a margin of profit. ALso knowing its a niche product – doesnt help
Apple had a net quarterly profit of $3.38 billion in the last quarter. Enough said.