The new iPad: price breakdown

The new iPad: price breakdown‘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.

Read more about: Apple iPadApple iPad 2Apple iPad 3iOS

Add a comment
12 comments

blizzard7  Mar. 11, 2012 at 16:44

I read somewhere that the reason this iPad isn't called iPad 3, is because they want to move back to their traditional naming scheme where products just had their name and then a quietly spoken year or feature differentiator.

For example, the iPod nano has always been called the iPod nano, they've never used differentiators like the iPod nano 2. Same with their Macs, the MacBook Pro is only known by it's name with no number differentiator.

matt101101 / MOD  Mar. 11, 2012 at 18:07

That'd be £200-worth of components to us. Priced £499, that's a margin of 60% in the UK. By 'eck.
Three little letters....VAT.

blizzard7  Mar. 11, 2012 at 18:29

That'd be £200-worth of components to us. Priced £499, that's a margin of 60% in the UK. By 'eck.
Three little letters....VAT.


I dunno... They're not that little when you capitalise them.

matt101101 / MOD  Mar. 11, 2012 at 18:32

They're always capitalised, as it's not an actual word (Value Added Tax).

thecoreoftheapple  Mar. 11, 2012 at 20:49

Wow. Once again Apple bring out a "new" product that doesn't really have anything new about it. Okay, so the processing power has a bit more ooomph and the screen is nicer. Big deal. Apple are so lame that they just regurgitate what is essentially the same product every year with a few extras. Worst about it is the Apple followers who will blindly go out and buy these products with their hefty price tags without stopping and saying "hold on, this is the same sh!t I just bought a year or two ago".

hard123  Mar. 11, 2012 at 21:53

Wow. Once again Apple bring out a "new" product that doesn't really have anything new about it. Okay, so the processing power has a bit more ooomph and the screen is nicer. Big deal. Apple are so lame that they just regurgitate what is essentially the same product every year with a few extras. Worst about it is the Apple followers who will blindly go out and buy these products with their hefty price tags without stopping and saying "hold on, this is the same sh!t I just bought a year or two ago".

I'm not having that.

Apple produce 1 Quality phone & tablet every 12 months - with incremental improvements EVERY time.

Samsung/HTC produce 10x as many devices over the same period, MANY of which have little to no improvements over previous models. You can criticise Apple over a lot of things, rejuvenation of their product lines isn't one of those.

Treab  Mar. 11, 2012 at 22:13

That'd be £200-worth of components to us. Priced £499, that's a margin of 60% in the UK. By 'eck.
Three little letters....VAT.


Plus isnt the american price shown WITHOUT local taxes? as different areas charges between 15-20% also we have an import duty which the usa doesn't as its an american company...

matt101101 / MOD  Mar. 11, 2012 at 23:06

Yes, US prices are shown without any tax added on as sales tax rates vary from state to state.

jmarcelino  Mar. 12, 2012 at 11:28

I love these numbers they come up with.

So they say the iPad 2 WITH 3G cost less in parts than the Wifi-only HP TouchPad (both from last year, Touchpad being newer)?

http://www.isuppli.com/Teardowns/News/Pages/HP-TouchPad-Carries-$318-Bill-of-Materials.aspx

Why can't I get a job like this. Can someone estimate the salary they get for writing this rubbish? I need to see if it's enough to pay for the weed I'd be smoking :)

CTPAHHIK  Mar. 12, 2012 at 14:00

Wow. Once again Apple bring out a "new" product that doesn't really have anything new about it. Okay, so the processing power has a bit more ooomph and the screen is nicer. Big deal. Apple are so lame that they just regurgitate what is essentially the same product every year with a few extras. Worst about it is the Apple followers who will blindly go out and buy these products with their hefty price tags without stopping and saying "hold on, this is the same sh!t I just bought a year or two ago".

I would have to disagree. This time around there is significant improvement in terms of user experience due to higher resolution display.
You might still have 480p TV, but I was willing to pay more for 1080p one.

Pondlife  Mar. 12, 2012 at 17:21

I love these numbers they come up with.

So they say the iPad 2 WITH 3G cost less in parts than the Wifi-only HP TouchPad (both from last year, Touchpad being newer)?


Suspect its rather likely it would cost less due to the volumes they can buy in.

matt101101 / MOD  Mar. 12, 2012 at 17:23

^^^ Fair point, tbh.

Email:

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

Comment: