Apple’s Newest iPad is Least Expensive To Manufacture – AAPL

by Business Insider | November 5, 2013 2:30 pm

iPad Air1 Apple's Newest iPad is Least Expensive To Manufacture   AAPLAllThingsD got its hands on a report by research firm IHS that explains that each Apple (AAPL[1]) iPad Air costs between $274 and $361 for AAPL to manufacture.

The fluctuation there depends on things like storage space and 3G/LTE capabilities. Adding those features adds cost, naturally.

Considering that the devices start retailing at $499 and go all the way up to $929, it’s only good news for Apple.

AAPL iPad Air’s display is more expensive than previous generations, but the components still end up totaling $42 less than the base model third-generation iPad because there’s not much else new on the inside.

From AllThingsD[2]:

Yes, there’s a new Apple chip, the A7, but at an estimated cost to Apple of $18 (Samsung (SSNLF[3]) still manufacturers it for Apple under contract), it costs five dollars less per unit than the A5 processor did 18 months ago. Dialog Semiconductor produces a power management chip that goes with it, though this one is bigger than one seen in the iPhone 5S.

Endnotes:
  1. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  2. From AllThingsD: http://allthingsd.com/20131105/ipad-air-has-spendier-display-costs-less-to-make-than-earlier-models/
  3. SSNLF: http://studio-5.financialcontent.com/investplace/quote?Symbol=SSNGY

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