A teardown analysis on Apple’s parts has indicated that it might not be more than $250. It is believed that much of the cost has been spend by Apple on R&D of the device so that it looks more convenient while in the hands of the end users.
It is estimated that the cost of the touch screen is no more than $95. The inbuilt processor is designed by Apple and manufactured by Samsung. The cost of the processor is anywhere in the range of $25-$30.Flash memories embedded in iPad have been supplied by Samsung too. The actual unit costs of flash memories are as follows:
- For 16-GB model- $30
- For 32-GB model – $59
- For 64-GB model – $120
The 16-GB iPad would cost somewhere around $250 to Apple and is being sold at $499. The 32-Gb iPad is costing Apple around $290 and it’s been up for sale at $599. The 64-GB piece would be commercially sold at $699. It costs Apple somewhere around $350 for this version of iPad.
Unit Cost Breakups for other parts are as follows:
- Chip for Bluetooth & Wi-Fi – $8
- Chip for Touch Screen Control – $2
- Audio Chip – $1.5
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