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Thread: UBM Says 16GB iPad with 4G LTE Costs Apple $310

  1. #1
    MMi Staff Writer Michael Essany's Avatar
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    Default 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).

    Source: UBM
    Last edited by Michael Essany; 03-09-2012 at 11:26 AM.

  2. #2
    With all that profit. Gotta figure paying all employees, hopping charges ad so on and so forth. But they still make a lot.


    Your mom has "spirit" but I used my "pwnage tool" on her all night long and "ultrasn0wed" all over her. haha

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    My iPhone is a Part of Me TheDirtyDiddler's Avatar
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    I wonder how much it costs to make a Kindle Fire. Maybe we can do it ourselves!

  4. #4
    Quote Originally Posted by spooneditr View Post
    With all that profit. Gotta figure paying all employees, hopping charges ad so on and so forth. But they still make a lot.
    nice job apple

  5. #5
    well it doesn't include the aluminum body, and its not counting into effect how much they paying foxcom for assembly.

    and yes im going into all them little pesky parts, cause the title never say how much the major components cost,, instead it says how much it cost to apple as in total.
    so in reality its not a 51% mark up. and let us not forget, free shipping, to those that order it.

  6. #6
    Quote Originally Posted by spooneditr View Post
    With all that profit. Gotta figure paying all employees, hopping charges ad so on and so forth. But they still make a lot.
    Actually some of that profit goes into labor for making the product. Some of it goes to future updates. Some of it goes to advertising for the product and some going to future versions of the iPad. So after all said and done apple probably makes only $50 or less per unit sold. Just guessing but the process goes along those lines.

  7. #7
    So, I wonder what the labor costs are? Apple paying Foxconn per unit then Foxconn paying workers 12.50 a day.

  8. #8
    you guys are retarded.

    "Wondering how much the components of a new iPad cost?" this is just a cost of components only. components that aren't assembled.

    "But Apple is still turning a pretty penny on each chunk of hardware." WRONG.

    do you guys know anything about cost accounting? did you go to college?

    there are SOO many other costs, like marketing, distribution, licensing, patents, shipping, labor, electricity, power, research and development, managers, rent, taxes, wages etc

    you need to allocate so many indirect costs.

    apple doesn't make as much as you think per ipad, they focus on selling MASS quantities and that's how they're so rich.

    actual contribution margin is very low for their products

  9. #9
    iPhone? More like MyPhone GooseG's Avatar
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    Quote Originally Posted by TheDirtyDiddler View Post
    I wonder how much it costs to make a Kindle Fire. Maybe we can do it ourselves!
    According to the Internet it costs $209 to make a kindle fire. Therefore losing $10 dollars each. That is made up for by all the movies and books and music and crappy apps people can buy.

  10. #10
    its really nice good job by apple.........................

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