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What it costs Apple to make its new iPad

According to UBM TechInsights, it costs Apple about $US310 for the components in the 16GB, wi-fi plus 4G model of its new iPad, which retails for $US629 (it will be released in New Zealand on March 23; local pricing has yet to be announced).

UBM says the new iPad's retina display costs Apple about $US70, an increase on the iPad 2's $49.50 screen.

The LTE/4G radio is estimated to cost $US21 compared to $US10 for the 3G technology used in the iPad 2.

The new iPad's processor - which adds support for quad core graphics - is said to Apple $US28, compared with $22 for its predecessor.

UBM's total gives Apple a 51% gross profit margin.

But one problem: it doesn't allow for software, marketing, R&D, design or distribution costs - not insubstantial details.

Comments and questions
2

It may not allow for Apple's purchasing power on those products either.

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