$400 profit on each iPad 2 sold

0 profit on each iPad 2 soldMarket Intelligence guys iSuppli have revealed some fascinating figures regarding the iPad 2’s production costs. The total cost of the 32GB iPad 2 with Wi-Fi and 3G is just $326.60, meaning Apple walks away with around $400 on each unit sold.

Despite the various improvements with the iPad 2, it only costs $6 more than the original to manufacture. The addition of front and rear cameras is one of the most notable upgrades, but they cost a measly $4.30.

The iPad 2’s touchscreen makes up a huge chunk of the $326.60 production cost, at $127. The original iPad’s screen was a whack cheaper, at $95.

Apple is reported to have sold 500,000 iPad 2s at the weekend, according to Piper Jaffray analyst Gene Munster. Multiply that figure by the aforementioned $400 profit, and that means Apple has made somewhere in the region of $200m already.

As we mentioned yesterday, customers in the US now face a wait of 3-4 weeks for the iPad 2. We’re hoping we don’t see a repeat of last year, when the iPad’s UK release was delayed; Apple shifted some of its rest-of-the-world allocation to satisfy US demand.

Read more about: Apple iPad 2iOS

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MuscleFlex  Mar. 14, 2011 at 15:41

so what? MAMAS & PAPAS here in the UK make the same markup with theirs?! for example, their most expensive 4x4 battery operated car that retails for nearly £600, they only buy them for £150 from china.

sdiuwfhiuhfui  Mar. 14, 2011 at 15:57

Newsflash! Apple products are overpriced for what they are.. what's new?

Stelph  Mar. 15, 2011 at 10:57

Well obviously the number iSuply provides doesnt take into account the R&D costs that were put into developing the new iPad, so its not as easy as saying that is $400 per iPad, but it does show that there is asignificant amount of money being made per pad, and how stupid other manufacturers are for not cutting their own profit margins and undercuting Apple


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