trollhunt3r

How much does it cost to make a tablet?

Are tablets expensive to make or are we getting ripped off?

Most Useful Answer JanSt  Sep. 13, 2011 at 12:14

Good question.
I hate those sites where they add up the cost of individual parts to then conclude the iPhone is only worth £29.45... :p

A lot of money...a LOT goes into R&D, that of course goes into the price as well. Nokia spend billions to make sure a phone survives weeks in a cluttered handbag, on a hot car dashboard etc etc...

Having said that, Apple's obscene cash reserves or Elop's idiotic bonusses suggest we pay too much.
Gates made 50+ billion - was Vista worth 200 bucks?

2 litre of Irish Ballygowan cost €2.00 - the company pay zip for the water... River Rock is tapwater....those companies sell water at up to 12000 times the value by putting it in estrogen leaking plastic bottles.

Of course we pay to much. Of course Foxconn workers could be paid more...
In the nineties it was shown that if Nike had cut their marketing budget by 5% they could have ended the use of sweatshop slavery....

Of course, tech development and manufacture is not like printing a logo on a £0.50 t-shirt, but clearly the margins are there.
After gazillion iphones sold, the R&D costs are back in the piggy bank...

On the other hand, the tablet market has proven to be a risky battleground. HP or Acer, or indeed Samsung gamble heavily. They cannot plan on selling millions. So they rob early birds and see where that leads...

Then again: can you build a tab? I can't! :p

My friend's an aircraft engineer. He once showed me a half inch bolt. Looked like any **** bolt. Cost £700! in a cluttered handbag, on a hot car dashboard etc etc...

Having said that, Apple's obscene cash reserves or Elop's idiotic bonusses suggest we pay too much.
Gates made 50+ billion - was Vista worth 200 bucks?

2 litre of Irish Ballygowan cost €2.00 - the company pay zip for the water... River Rock is tapwater....those companies sell water at up to 12000 times the value by putting it in estrogen leaking plastic bottles.

Of course we pay to much. Of course Foxconn workers could be paid more...
In the nineties it was shown that if Nike had cut their marketing budget by 5% they could have ended the use of sweatshop slavery....

Of course, tech development and manufacture is not like printing a logo on a £0.50 t-shirt, but clearly the margins are there.
After gazillion iphones sold, the R&D costs are back in the piggy bank...

On the other hand, the tablet market has proven to be a risky battleground. HP or Acer, or indeed Samsung gamble heavily. They cannot plan on selling millions. So they rob early birds and see where that leads...

Then again: can you build a tab? I can't! :p

My friend's an aircraft engineer. He once showed me a half inch bolt. Looked like any **** bolt. Cost £700!

Add a comment
3 comments

JanSt / MOD  Sep. 13, 2011 at 12:14

Good question.
I hate those sites where they add up the cost of individual parts to then conclude the iPhone is only worth £29.45... :p

A lot of money...a LOT goes into R&D, that of course goes into the price as well. Nokia spend billions to make sure a phone survives weeks in a cluttered handbag, on a hot car dashboard etc etc...

Having said that, Apple's obscene cash reserves or Elop's idiotic bonusses suggest we pay too much.
Gates made 50+ billion - was Vista worth 200 bucks?

2 litre of Irish Ballygowan cost €2.00 - the company pay zip for the water... River Rock is tapwater....those companies sell water at up to 12000 times the value by putting it in estrogen leaking plastic bottles.

Of course we pay to much. Of course Foxconn workers could be paid more...
In the nineties it was shown that if Nike had cut their marketing budget by 5% they could have ended the use of sweatshop slavery....

Of course, tech development and manufacture is not like printing a logo on a £0.50 t-shirt, but clearly the margins are there.
After gazillion iphones sold, the R&D costs are back in the piggy bank...

On the other hand, the tablet market has proven to be a risky battleground. HP or Acer, or indeed Samsung gamble heavily. They cannot plan on selling millions. So they rob early birds and see where that leads...

Then again: can you build a tab? I can't! :p

My friend's an aircraft engineer. He once showed me a half inch bolt. Looked like any **** bolt. Cost £700! in a cluttered handbag, on a hot car dashboard etc etc...

Having said that, Apple's obscene cash reserves or Elop's idiotic bonusses suggest we pay too much.
Gates made 50+ billion - was Vista worth 200 bucks?

2 litre of Irish Ballygowan cost €2.00 - the company pay zip for the water... River Rock is tapwater....those companies sell water at up to 12000 times the value by putting it in estrogen leaking plastic bottles.

Of course we pay to much. Of course Foxconn workers could be paid more...
In the nineties it was shown that if Nike had cut their marketing budget by 5% they could have ended the use of sweatshop slavery....

Of course, tech development and manufacture is not like printing a logo on a £0.50 t-shirt, but clearly the margins are there.
After gazillion iphones sold, the R&D costs are back in the piggy bank...

On the other hand, the tablet market has proven to be a risky battleground. HP or Acer, or indeed Samsung gamble heavily. They cannot plan on selling millions. So they rob early birds and see where that leads...

Then again: can you build a tab? I can't! :p

My friend's an aircraft engineer. He once showed me a half inch bolt. Looked like any **** bolt. Cost £700!

MDrX  Sep. 13, 2011 at 15:41

Back to the individual cost of the components; iSuppli suggests a cost of $326.60 for the iPad 2. Apple (and third parties) then sell for $499.

That's not an absurd mark-up when you factor in everything Jan mentioned. R&D, Apple's cut, the store's cut, the manufacturing cost, packaging, marketing, blah blah blah.

The problem premium tablets have is that a premium brand for snobs can sell their ultra-thin, ultra-light tablet at that £400. Undercut that too much and you lose money. Apple will make a slight profit and then make a killing on iTunes, the App Store and iCloud. No one else can compete with the infrastructure that Apple has in place so they have to sell their hardware for as much as possible. Until Amazon launch..

I still think the sweet spot is £200-£250 though. And not manufactured by a dodgy Chinese no-name.

matt101101 / MOD  Sep. 13, 2011 at 16:25

I know the HP touchpad cost $296/318 for the 16/32gb models. They were sold in the US for $500/600 respectively. At firesale prices, HP were losing $200ish per tablet. That's before you even take into account the hours and hours of R&D that went into the touchpad and the $1.2 billion that HP paid for Palm in 2010....ouch that's what happens when your tablet goes balls up...

Email:

You don't need an account to comment. Just enter your email address. We'll keep it private.

Comment: