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

By Matthew ยท 15 replies
Mar 15, 2011
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  1. 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.

    Read the whole story
  2. Trillionsin

    Trillionsin TS Evangelist Posts: 1,595   +257

    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.
  3. Jesse

    Jesse TS Evangelist Posts: 358   +42

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

    Raswan TS Enthusiast Posts: 279

    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.
  5. Still wonder why Apple does not sell clothes, I'm sure they could make a $1 t-shirt that everyone would buy for $700.
  6. KG363

    KG363 TS Guru Posts: 515   +9

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

    Still, those are some pretty healthy margins
  7. Kibaruk

    Kibaruk TechSpot Paladin Posts: 3,285   +900

    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.
  8. Xclusiveitalian

    Xclusiveitalian TS Evangelist Posts: 714   +75

    You would have to be a complete ***** to actually get ripped off this bad
  9. The apple life style looks like it costs 10% extra to me (I work in IT sales)
  10. stewi0001

    stewi0001 TS Evangelist Posts: 1,681   +1,080

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

    Kibaruk TechSpot Paladin Posts: 3,285   +900

    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).
  12. SNGX1275

    SNGX1275 TS Forces Special Posts: 10,742   +421

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

    Kibaruk TechSpot Paladin Posts: 3,285   +900

    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?
  14. Trillionsin

    Trillionsin TS Evangelist Posts: 1,595   +257

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

    Kenrick TS Evangelist Posts: 570   +372

    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.
  16. bluebob951

    bluebob951 TS Member Posts: 57

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

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