Apple’s iPad may be as “magical and revolutionary” on the inside as it is on the outside, according to a breakdown of its construction by iSuppli.
The research firm prices the components inside the $499 16Gb iPad as totalling $250.60, plus $9 for manufacturing, and it says the way they are put together represents a new paradigm for electronics.
The emphasis is on the screen, both in the proportion of the costs and the way the iPad is designed.
The 9.7-inch display made by LG is the most expensive component at $65, or 26 per cent of the total parts cost. The second most expensive item is the capacitive touchscreen overlay, costing $30, from Wintek.
Andrew Rassweiler, iSuppli’s teardown services manager, says the iPad differs from conventional motherboard-centric notebooks, where the display and other elements are considered peripherals.
“With the iPad, this is reversed,” he says.
“Everything is human-machine-interface-centric, with the [printed circuit board] and integrated circuits all there to facilitate the display of content as well as user inputs.
“The iPad design represents a new paradigm in terms of electronics cost structure and electronic content.”
Other major cost items are the Nand flash memory at $29.50 from Samsung, the battery at $21 and the microprocessor at $19.50 – designed by Apple and manufactured by Samsung.
ISuppli’s calculations do not give Apple a $240 profit per 16Gb iPad – they do not take into account costs such as software, royalties, licensing fees and marketing.
