‘The new iPad’ (yep, still hating that name) certainly ain’t cheap, and a price breakdown from EETimes reveals – or estimates rather – what you’re getting for your money.
Of course, since the third generation iPad is enhanced in many ways over the iPad 2 while selling for the same price, Apple’s profit margin will take a hit. Well, in theory.
The key difference is the 2048 x 1536 Retina display, which costs $70 compared to the $53.70 effort on the iPad 2. The battery is up quite a bit too, from $22.70 to $30.
The shiny new dual-core A5X processor, however, is up just a couple of bucks, from $25.80 to $28.
In total, EETimes reckons the components in the third generation iPad (16GB with 4G) are worth around $310. Selling for more than twice the price at $629, that yields a profit of ‘just’ 51% in the US. Poor Apple. That’s down from 56% with the iPad 2.
Actually, waitasec. That'd be £200-worth of components to us. Priced £499, that's a margin of 60% in the UK. By 'eck.
Oh, but don’t forget R&D and marketing and that. And again, these are simply estimates at the moment, pending the actual arrival of the third generation iPad this Friday.