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iPad only costs $260 to build

Written by Andre Yoskowitz (Google+) @ 07 Apr 2010 23:35 User comments (7)

iPad only costs $260 to build iSuppli has done a full component teardown of the Apple iPad, and the cost of the hardware for the cheapest model comes out to about $260 USD. It is also important to note, however, that the teardown is only for the hardware, and does not include R&D or shipping.
The cheapest iPad, which includes 16GB of flash memory sells for $499.

The 32 GB version, with a $599 price tag, has $289.10 worth of hardware. The top of the line 64GB version, which sells for $699, has $348.10 worth of hardware.

The most expensive components are, as expected, the touchscreen and the processor. The multitouch display adds $95 USD to costs and the Samsung processor is $26.80. Flash memory depends on the capacity: $29.50 for the 16GB memory, $59 for the 32GB, and $118 for the 64GB.

The aluminum back casing adds $10.50. There are more components of course, but they cost under $10 a piece.

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7 user comments

18.4.2010 0:47

I kinda get sick of all these iSuppli-based 'articles.' First off, they're not always accurate, but most of all they don't take into account other large portions of costs for products, leading many ignorant people who see that limited info to think they have 100% markup or so.

28.4.2010 0:53

Still a P.O.S

38.4.2010 3:16

"the teardown is only for the hardware, and does not include R&D or shipping"

Device - $260
R&D = almost none; it is just an oversized iPod...maybe $5 per unit at most.
Shipping = $10 each, at most?
TV advertising = $10 each, at most?
Total Cost: $285
Cost to buy: $500

total markup: 61.5%, or over $200 each.

So no, not a 100% markup; only 61.5%...still a lot, and the markup on the 32GB and 64GB models is just under 100%...the markup on the 32GB is almost $300, and the markup on the 64GB is over $300.

Oh, and that does not even count the USB and SD adapters, or the keyboard, or any of the other accessories that they launched with, but STILL DON'T MAKE. Oh, and you will spend a good amount on apps too...because apple removes the free versions of apps that compete with pay apps.

I'll wait for the Android/Linux tablets.

48.4.2010 15:29
WierdName
Inactive

OK, so Apple has their finger up their customers ...
So what's new? Is anyone who's not blindly in love with Apple not aware of this? The actual Apple products aren't that bad. They're computers just like any other. My problem is the huge markup they put on their products and the blind fanboyism that Apples are the only competent computers. Not to mention the propaganda they put out that their computers are perfect. I have seen more than enough Apple crashes to confirm the contrary. But now I'm just ranting and should stop before the fanboys go crazy.

59.4.2010 20:57

I would buy the iPad if it's $350, even if it's only 16 GB.

610.4.2010 4:55

IPAD =========================> JUNNNNNNNKKKKKKKK

710.4.2010 20:30

Originally posted by xnonsuchx:
I kinda get sick of all these iSuppli-based 'articles.' First off, they're not always accurate, but most of all they don't take into account other large portions of costs for products, leading many ignorant people who see that limited info to think they have 100% markup or so.
What, and you think Apple doesn't make a 100% profit at the Apple store. If they don;'t they would be fools. What cabbage wagon did you fall from? Standard retail is 50 - 100% markup. Why do you think Apple made the biggest profit per investment of the fortune 500? They know how to make a killing. There is nothing wrong with that.

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