Cost to build iPad: iSuppli says as little as $229.35

iSuppli, the folks who like to tear down hot products right after they're released, have already come out with a report estimating the manufacturing costs of the various iPad models.


iSuppli, the outfit that makes it a habit of tearing down products as soon as they're released and splaying out their components for all to see, has already done an analysis of what it will cost Apple to build the $500 base model iPad. Not surprisingly, the number comes in at a good 50 percent less than the sales price--and it gets even better (for Apple anyway) as you move to the 32GB and 64GB models and add the 3G wireless component.

Remember, of course, this is only an estimate of hardware and manufacturing costs and doesn't factor in software, licensing fees, and a rather large promotional budget. That said, if you've ever wondered why Apple doesn't offer memory expansion slots for any of its products, the chart below gives you a pretty good reason why.

Though none of these numbers are confirmed, memory prices are memory prices, and paying $100 extra for something that cost Apple around $30 more (when you go from the 16GB to the 32GB model), is a tidy profit. The sad part is that most savvy consumers know they're getting ripped for adding that extra memory, yet we still do it (yes, I bought a 32GB iPhone).


The iPad's estimated bill-of-materials and manufacturing cost analysis, according to iSuppli. iSuppli

Featured Video
This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?
Sorry, you are not old enough to view this content.

iPhone 6S chip controversy over battery life

Not all new iPhones have the same processor chip, but Apple says differences in performance are minimal. Apple also pulls ad-blocking apps over privacy concerns, and Netflix raises its price again.

by Bridget Carey