4G LTE iPad Manufacturing Estimated At $310

Ryan St Onge March 10, 2012 1



One fact I have always found interesting is how much it costs to create an electronic device. Company’s sell computers,tablets,phones, etc, for unbelievable prices. But the fact hidden is the costs to construct the device. Luckily, UBM TechInsights has put together a chart listing the cost of the various components of the iPad 1,2, and ‘New’.  Take a look below to find out how much Apple really profits from their products.

As listed above, the 16 GB New iPad 4G model costs Apple $310 to create. This means Apple gains a profit of 51% from each New iPad they sell. When the very first iPad was released a few years ago the price was $270 for parts. Then a year later Apple released the iPad 2,which costed $276 for parts. Each year Apples cost to create their devices is on the rise, but the profit has been on the decrease. The increase in sales are likely to makeup for the profit margin, thankfully!

The price of the camera on the New iPad is listed at $12.50, more than double that of the iPad 2. The retina display was even added to the new iPad, raising the display price around $16 from the iPad 2′s display price. Another notable huge price rise was the battery, which went through a major upgrade to support the new A5X processor and retina display.

The row in dark blue is what the discounted iPad 2 costs to make now-a-days compared to one year ago. Last year parts costed a total of $276, while this year they only cost $248 to purchase. Many parts become outdated lowering the price throughout the months.

For more statistics use the chart above to compare. Did you find this chart interesting? 

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