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The 16GB 4G version of the new iPad will have a component cost of $310, or 49% of the device's...

  • Friday, March 9, 2012, 11:36 AM ET
    The 16GB 4G version of the new iPad will have a component cost of $310, or 49% of the device's $629 price tag, estimates UBM TechInsights. That makes it more costly to build than a comparable iPad 2 (AAPL), whose components account for 44% of its cost. The new iPad's high-res display, estimated to cost $20.50 more than the iPad 2's display, stands to affect margins for both Wi-Fi and 4G models, as do higher assembly costs.
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This news story has 8 comments:

  •  
    but if they sell twice as much, I wouldn't exactly cry for AAPL and its shareholders. Another homerun!
    9 Mar 2012, 11:41 AM Reply Like
  •  
    :/ ...but if they sell half as much... are the buyers lining up yet?

    No doubt it's a good product, but "the new iPad" is not a Wow! product.
    9 Mar 2012, 11:46 AM Reply Like
  •  
    As far as I can tell, they included the smart cover with iPad 2 but not the New iPad.
    9 Mar 2012, 01:41 PM Reply Like
  •  
    Smart cover was not included with any iPads
    17 Mar 2012, 02:02 AM Reply Like
  •  
    The thing to take away from this story is that sometimes not raising prices for obvious bar-raisers, is a form of competitive price reductions - a common critical complaint re AAPL.
    9 Mar 2012, 03:34 PM Reply Like
  •  
    That's only a 5% change; does UBM have the actual figures that Apple is paying, or are they just "guestimating"?

    Real costs are based on contractural agreements between Apple and its suppliers, and as the biggest kid on the block, Apple has some influence over their suppliers. A 5% adjustment can probably be adjusted for throughout its supply chain.
    10 Mar 2012, 08:36 AM Reply Like
  •  
    Good to know the actual numbers but it's pretty obvious margins were going to compress some with no pricing change.

    As for the wisdom of this, I'm going to trust AAPL management regarding how they price the product.
    11 Mar 2012, 12:19 PM Reply Like
  •  
    The retina display is awesome, older iPad displays made my eyes tired.

    I work in front of a Mac often and the new display on the MacBook Pros would be awesome. I'd pay the extra for the new display.
    16 May 2012, 06:16 PM Reply Like
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