The new iPad represents high levels of profitability for Apple, according to a breakdown of the price of its components and manufacturing cost by the iSuppli research firm.
Apple appears to have marked up the cost of 3G versions of the iPad considerably and its 32Gb model will offer it the biggest margins if iSuppli’s estimates are correct.
The firm says a basic $499 16Gb iPad costs $219.35 in components and $10 to manufacture, giving Apple a profit of $270 a unit before software, royalties, licensing fees and other costs.
Apple charges an extra $130 for a 3G version, but the components for this – wireless and GPS chips – cost only $27.
On the $599 32Gb version, the additional flash memory costs only $30 more and with the $729 3G option, Apple is clearing $442 for every unit.
The top-of-the-range 64Gb with 3G iPad will retail at $829, but cost $346 to produce.
At a combined cost of $80 for all models, the iPad’s display and touch-screen interface are the most expensive part of the device, accounting for 29 per cent of the Bill of Materials of the mid-range 3G model.
As in other analyses, iSuppli says LG Display and Innolux are the most likely suppliers of the display.
