The New iPad 4G Costs Just $310 For Apple To Make

The New iPad 4G Costs Just $310 For Apple To Make

Every time a new Apple device comes out, there’s a general commotion as analysts try to break it down atomically into its base elements, weigh the dust and figure out how much it all cost Apple to build, thus extrapolating how many oodles of money Cupertino’s raking in with each gadget sold.

For the new iPad, the initial estimates are in, and surprise! Despite improving the iPad’s battery, display, wireless internet speeds and GPU, Cupertino’s making a healthy profit on each iPad sold.

The initial analysis comes by way of UBM TechInsights, who believe that a 16GB iPad LTE costs Apple just $310 in raw components, equaling a $319 margin on each iPad sold.

In other words, Apple’s building 16GB iPad LTEs for less than half of what they are selling them for. That’s pretty good, but Apple’s still making less on each new iPad than they were on the iPad 2, which net them a 56% margin on each unit sold when it was first released back in March 2011.

So where’s all of the cost of each iPad going? The new Retina display is the biggest burden against Apple’s bottom line, costing $70 per panel, compared to the iPad 2’s $49.50 display. And the universal Qualcomm LTE/3G chipset probably costs $21, more than twice what the 3G chip in the iPad 2 cost. Finally, the A5X costs $28 compared to the $22 an A5 cost.

Of course, none of these builds costs account for marketing, shipping, manufacturing and other assorted costs. But if there’s one thing Apple’s good at besides designing products, it’s making money. You can bet that Apple is making a healthy profit on each new iPad sold already… and that per-unit profit’s only going to get more amazing as the year goes on.

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  • tv_gadget

    thats very expensive compared to the $200 manufacturing cost of quad core android tablets…

  • CharliK

    And once again this looks like part costs with no consideration for licensing etc. it is possible that Apple isn’t making as much as it seems. Especially on the lower end. The actual cost could be more like $350-$400 even perhaps as high as $450 once you add licensing and other costs. Meaning they almost sell the 16GB at cost and it’s the 32 and 64 where the real money comes in

  • TTTNL

    Welcome to the world bitches, everybody is making money, buying things from china directly makes you open your eyes about prices you have to pay instead of the prices you pay here. http://www.everbuying.com or http://www.dealextreme.com or http://www.lightake.com. check them out then you know it’s just the marketing and name you are paying for. (Which the iPad is completely worth because of the user experience.)

  • warrengonline

    $310 and sell for $399.  Wow.  Crazy.  I think the 16GB should be licensed to school and such.  My iPad2 16GB is just too small a space for working and casual play.

  • Joshua Lessard

    Also tariffs and customs and shipping, you can’t tell me it’s cheap to ship a pallet of ipad’s from Shenzhen to Hong Kong to wherever.  

About the author

John BrownleeJohn Brownlee is a Contributing Editor. He has also written for Wired, Playboy, Boing Boing, Popular Mechanics, VentureBeat, and Gizmodo. He lives in Boston with his girlfriend and two parakeets. You can follow him here on Twitter.

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