Feeds

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

More fondleslab for your folding

Internet Security Threat Report 2014

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. ®

Intelligent flash storage arrays

More from The Register

next story
Chipmaker FTDI bricking counterfeit kit
USB-serial imitators whacked by driver update
Xperia Z3: Crikey, Sony – ANOTHER flagship phondleslab?
The Fourth Amendment... and it IS better
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Microsoft to enter the STRUGGLE of the HUMAN WRIST
It's not just a thumb war, it's total digit war
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.