Feeds

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

More fondleslab for your folding

The Essential Guide to IT Transformation

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. ®

Build a business case: developing custom apps

More from The Register

next story
Nice computers don’t need to go to the toilet, says Barclays
Bad computers might ask if you are Sarah Connor
4K video on terrestrial TV? Not if the WRC shares frequencies to mobiles
Have your say with Ofcom now, before Freeview becomes Feeview
YES, iPhones ARE getting slower with each new release of iOS
Old hardware doesn't get any faster with new software
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
PEAK LANDFILL: Why tablet gloom is good news for Windows users
Sinofsky's hybrid strategy looks dafter than ever
You didn't get the MeMO? Asus Pad 7 Android tab is ... not bad
Really, er, stands out among cheapie 7-inchers
Apple winks at parents: C'mon, get your kid a tweaked Macbook Pro
Cheapest models given new processors, more RAM
VMware builds product executables on 50 Mac Minis
And goes to the Genius Bar for support
Leaked Windows Phone 8.1 Update specs tease details of Nokia's next mobes
New screen sizes, dual SIMs, voice over LTE, and more
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.