iSuppli: Apple's iPad 2 costs $333.25 to build

By on March 15, 2011, 4:25 PM
The folks at iSuppli have cracked open an iPad 2 to determine the cost of its guts. According the research firm's breakdown, the new tablet's total bill of materials is $323.25 for the 32GB CDMA model, while the 32GB GSM/HSPA version is a tad more expensive at $326.60 (both retail for $729). That's in line with the first iPad, which iSuppli valued at $320 last April.

"Despite the obvious changes to iPad like the enclosure and the battery, and the less obvious changes in the touch screen, the iPad 2's components and design are remarkably similar if not the same as those of the iPad 1," said analyst Andrew Rassweiler. Both use the same components and suppliers for the NAND, multitouch controllers, touchscreen drivers and more.

More than a third of the iPad 2's expense stems from its 9.7-inch multitouch IPS display, which costs approximately $127. Its NAND storage and DRAM are the second most expensive, with memory chips representing $65.70 of the total cost. Materials related to the enclosure such as glass, metals and plastics as well as PCBs and connectors amounted to $25.


The iPad 2 battery is thinner than its predecessor and has one more cell, driving the cost from $21 to $25. Intel's GSM/HSPA chip costs $18.70 versus $16.35 for Qualcomm's CDMA module, and the former doesn't have integrated GPS, so that adds an extra $1.10 to the connectivity expense. Apple's A5 processor costs $14, which is 75% more than the original iPad's A4 chip.

The various sensors and controllers for user input (gyroscope, accelerometer, ambient light sensor etc.) total $11.90. Apple's box contents such as packing materials, booklets and accessories costs $5.80. The iPad 2's 720p camera, something the original slate didn't have, is reportedly the cheapest component at $4.30. ISuppli figures each unit costs $10 to manufacture.




User Comments: 15

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Trillionsin Trillionsin said:

Curious as to why these articles are published... we still have to pay the... what? like $700 if we wanted one... right?

If anyone knows, let me know please.

Staff
Jesse Jesse said:

That's like saying "why read a science book, we know the stuff works - who cares how?"

Raswan Raswan said:

I know what you mean, but it's still interesting to find out the nuts and bolts. For example, while I knew the screen was among the most expensive parts, I had no idea the gyrometer and accelerometer were so cheap. Twelve bucks? Pretty good. And I'm also surprised that manufacture costs are even less.

What it does tell you is that, assuming the raw materials markets remain stable, there is significant room for them to bring the price down. No way am I buying a $700 iPad or an $800 Xoom, but $500? maybe.

Guest said:

Still wonder why Apple does not sell clothes, I'm sure they could make a $1 t-shirt that everyone would buy for $700.

KG363 KG363 said:

This doesn't account for R&D, infrastructure, transportation, etc.

Still, those are some pretty healthy margins

Kibaruk Kibaruk, TechSpot Paladin, said:

You must consider some things like how much does it take to make a can of coke and how much you pay for it, you are paying:

1. Marketting.

2. Branding.

3. The system it uses.

4. The so much called "apple's life style".

5. Pretty much thats it.

Xclusiveitalian Xclusiveitalian said:

You would have to be a complete ***** to actually get ripped off this bad

Guest said:

The apple life style looks like it costs 10% extra to me (I work in IT sales)

stewi0001 stewi0001 said:

Guest said:

Still wonder why Apple does not sell clothes, I'm sure they could make a $1 t-shirt that everyone would buy for $700.

lol I totally agree. Gotta love paying for the "brand name"

Kibaruk Kibaruk, TechSpot Paladin, said:

Ok... this has been talked way too many times over and over again, apple takes a dump wrap it or paint it white and it sells, ok... but you all must admit they know how to do it, how to sell it and how to make proffit and for that you must take a breath and at least think one or two times before vomiting on the keyboard.

Name 1 company that sells their brand items for manufacturing price, please (In other words that gives you stuff for free).

SNGX1275 SNGX1275, TS Forces Special, said:

You would have to be a complete ***** to actually get ripped off this bad

Do you really think the parts in your PC cost as much to build as you paid for them?

Kibaruk Kibaruk, TechSpot Paladin, said:

SNGX1275 said:

You would have to be a complete ***** to actually get ripped off this bad

Do you really think the parts in your PC cost as much to build as you paid for them?

He must be a complete ***** to actually get "ripped off" like he did hahaha and then again, would you expect a company to try and make as little proffit as possible?

Trillionsin Trillionsin said:

prismatics said:

That's like saying "why read a science book, we know the stuff works - who cares how?"

No really... think about what you just said.

Kenrick said:

Agree with both kibaruk and kg363.

Research and Development costs are not included here. If someone can design an ipad with $400 just to avoid the so-called apple tax then good for you.

bluebob951 bluebob951 said:

I love apple so much for ripping people off. <3 Budget computers FTW.

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