Original URL: http://www.theregister.co.uk/2010/02/11/ipad_breakdown/
Researchers rip iPad apart to reveal Apple's profits
While Bill Gates just rips it apart
Apple stands to make a profit of up to $483 per unit on its iPad according to a very literal breakdown by industry analysts iSuppli.
The research firm said the total cost of materials and manufacture for Apple's big iPhone ranged from $229.35 for the 3G-less, 16GB version, which sells for $499 to $346.5 for the top of the range 3G 64GB version, which carries a $829 price tag.
While the top end product produces a profit of $482.85, it is the 32GB 3G version which iSuppli says will produce the biggest chunk of profit. That's because while it sells at $729, its manufacturing cost is a mere $287.15, less than 50 bucks more than the bottom end iPad, producing a bumper profit of $441.85.
iSuppli points out that the vast majority of the costs remains standard across the range - the display, processor, networking, and other components remain the same in every model.
Differentiation comes with the addition of 3G at $24.50, GPS at $2.60, and Flash memory.
The figures are a tribute to Apple's ability to press its users' buttons - and wallets.
However, it has not impressed everyone.
Bill Gates dissed the iPad to the Bnet blog yesterday. "It’s a nice reader, but there’s nothing on the iPad I look at and say, ‘Oh, I wish Microsoft had done it," he said.
Gates reckoned a mix of voice, pen and a real keyboard was the way forward. He has of course been a fan of tablets for years. On the other hand, that enthusiasm never translated into wide takeup of Microsoft's attempts at tablet PCs. ®