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    iPad Air cost only $274 to manufacture, leaves plenty of juice for Apple

    Surely iPad Air is the biggest revolution for Apple after 2010 original iPad. It now seems the iPad Air not only lost its weight and thickness but also cut the component cost, as the new model carries a lower bill of materials (BOM) than the third-generation iPad introduced last year. An analyst firm IHS iSuppli reveals that Apple spend between $274 and $361 to make iPad.
    While it grabs $499 for the 16GB Wi-Fi only model at the low end, and $929 for 128GB Wi-Fi + LTE version at the top. IHS estimates Apple’s implied gross margins on the iPad to range from 45 percent on the 16GB Wi-Fi only version to 61 percent on the 128GB LTE version.

    The estimates from IHS iSuppli cover only the cost of the various components that make up the device and do not include other costs involved in product development, manufacturing, and sales, such as research and development, software, patent licenses, marketing, and distribution expenditures.

    Where can i buy iPad parts on cheap rate

    The bill of materials includes $90 for the display, $43 for the touchscreen components, $18 for the A7 chip manufactured by Samsung, between $9 and $60 for the Toshiba-made flash memory chips, $10 for the DRAM chips manufactured by Elpida, and $32 for the cellular data network chips made by Qualcomm for the LTE-ready versions of the iPad Air.

    The biggest changes in iPad are the display and touchscreen assembly. For one thing, it’s thinner and has fewer layers in the combined assembly than in previous models. But, at an estimated combined cost of $133 (about $90 for the display and $43 for the touchscreen parts), it’s a lot more expensive than before, he said. South Korean electronics companies LG Display and Samsung are both thought to be suppliers of the display, he said.

    how much money apple spend to make iPad and iPhone
    Photo Courtesy: IHS iSupply

    With the iPad Air, Apple appears to have reached a new milestone on the wireless arena. It can support every LTE frequency with a single combination of chips. So the benefit is less variation of models mean lower total costs overall, and higher gross profits.

    This cost breakdown shows that Apple is sticking to its traditional pricing strategy. This may also be, in part, due to the fact the firm’s earnings recently fell 9 per cent. Apple was criticized many times for not dropping the prices of its latest iPhones and iPads in a bid to appeal to emerging markets.

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