UBM Says 16GB iPad with 4G LTE Costs Apple $310
Wondering how much the components of a new iPad cost? According to a new report from UBM TechInsights, the parts aren't cheap. But Apple is still turning a pretty penny on each chunk of hardware.
If the numbers are accurate, it would mean that Apple sees a 51 percent profit margin on a 16GB iPad with 4G LTE.
The estimated hardware costs for this model come in at $310. Apple sells it for $629. All told, it's not a bad deal for Apple given how the company didn't cut corners with the new device.
The most costly components of the third-gen iPad to Apple, as you might expect, are the high-res display ($70), the tablet's battery ($30) A5X processor ($28), and the touchscreen ($25).
"The bottom line is the new iPad's margin should take a little hit because of some of the expensive adders like LTE, the high-res display and camera, a bigger battery and faster processor," says Jeff Brown, a senior analyst with UBM TechInsights.
In reaching the $310 estimate cost, you also have to factor in no shortage of lower-cost components, of which there are many. They include the device's camera ($12.50), NAND flash storage ($16), SDRAM ($8.50) and the Wi-Fi, Bluetooth and GPS radios ($7).