As usual with the new iOS products, Apple is enjoying a tremendous success with the new iPad. We can easily predict how Apple is going to perform in this quarter after huge sales of the third generation iPad. But have you ever wondered how much it costs in making a new product to Apple? This is where folks at iSuppli come in. As always they have put together a nice table comparing the bill of materials (BOM) for the new iPad to analyse the estimated cost behind a the shiny new Apple iPad. Hit continue to see the price comparison tablet for materials with iPad 2 and different iPad 3 models.
This study only covers the costs behind the hardware, and does not feature additional expenses such as software, licensing, royalties or other expenditures.
The new iPad, equipped with 32 Gigabytes (GB) of NAND flash memory and 4G Long Term Evolution (LTE) wireless capability, carries a bill of materials (BOM) of $364.35. When the $10.75 manufacturing costs are added in, the cost to produce the new iPad rises to $375.10. The BOM of the 16GB 4G LTE version amounts to $347.55, and the 64GB version is estimated at $397.95.
iSuppli notes that although the price points for the new iPad have been kept same, it is more expensive to produce than its predecessor. The new iPad features a Retina Display Screen with 2048×1536 resolution, LTE capability and a larger battery.
The new iPad is more expensive to produce than the iPad 2 at the time of product launch, even though the retail price points are the same. The 32GB LTE model’s BOM is nearly 9 percent higher than an iPad 2 equipped with 32GB and 3G wireless, which carried a cost of approximately $335 at the time of product launch. Major factors driving up the BOM include the addition of the high-resolution Retina display, LTE wireless and a larger-capacity battery.