Published in AI
New iPad bill of materials starts at $310
Fancy components come at a price
Apple’s new iPad might not be a game-changer, but it is an impressive lump of hardware nonetheless and estimated component costs reflect the changes.
The bill of materials (BOM) for the 16GB 4G version is estimated at $310, significantly higher than a comparable iPad 2 ($248 to $275) or the original iPad, at $270. However, despite the increased cost Apple is still selling the new iPad at the exact same price point as its predecessor.
Obviously, the new hi-res screen has a lot to do with the increased cost. The cost of the new 2048x1536 panel is estimated at $70, some $20 more than the iPad 2 screen. The beefier battery adds another $8, the new camera costs $5 more and the A5X processor comes in at $28, almost double the A4 used on the first iPad.
The higher costs translate into lower margins, which have dipped from 57 percent for the original iPad to 51 percent for the latest model. So, while the new iPad is by no means a bargain, at least it offers better value for money than its predecessors.