Feeds

iPad 3 costs Apple 30% more to make than iPad 2

More fondleslab for your folding

Mobile application security vulnerability report

One thing Apple's doing with its massive cash mountain: giving punters more iPad for their money. The News iPad - aka the iPad 3 - costs as much to buy as the iPad 2 did, but it costs a lot more to make.

Case in point: the 16GB Wi-Fi only iPad 2 has an estimated bill-of-materials and assembly cost of $245.10 per unit, market watcher IHS iSuppli calculates.

The 16GB Wi-Fi only iPad 3's parts and manufacturing cost comes to $316.05 - 30 per cent more. Yet both retailed at $499/£399 at launch.

iSuppli iPad 3 exploded pic

Internally, it's the 2048 x 1536 display, A5X processor, the bigger battery - the new tablet's innards are mostly power storage - and 5Mp camera that lift the the iPad 3's BoM well above that of the iPad 2.

The new "retina" display, for instance, is $30 more than the iPad 2's $57 screen, iSuppli reckons. Likewise, the A5X costs $23, whereas the old A5 comes in at $14.20. The new camera, at $12.35, is $8.25 more expensive than its predecessor.

Samsung supplies the most parts, iSuppli said, but since Apple uses multiple suppliers for key components - Samsung and Toshiba for Flash storage chips, for example - the disassembly of any given iPad will not necessarily show what's in all of them.

Ultimately, what matters is that Apple has cannily taken the extra cost on the chin when it could easily have charged an extra $100 or so for the iPad 3 as a premium model. Keeping the price tag - and reducing that of the iPad 2 - should ensure Apple maintains market leadership and keep it ahead of Android for a little longer. ®

Boost IT visibility and business value

More from The Register

next story
Report: American tech firms charge Britons a thumping nationality tax
Without representation, too. Time for a Boston (Lincs) Macbook Party?
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Apple gets patent for WRIST-PUTER: iTime for a smartwatch
It does everything a smartwatch should do ... but Apple owns it
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
For Lenovo US, 8-inch Windows tablets are DEAD – long live 8-inch Windows tablets
Reports it's killing off smaller slabs are greatly exaggerated
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
Microsoft unsheathes cheap Android-killer: Behold, the Lumia 530
Say it with us: I'm King of the Landfill-ill-ill-ill
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.