The iPad Air includes some nice new hardware, but Apple’s favorite upgrade? It’s probably the increased profit that comes from being able to build the iPad Air for well under $300.
According to IHS iSupply, the base configuration of the slim new 10-inch iPad costs Apple around $274 to build. With the 16GB Air retailing for $499, that’s a healthy $225 in profit on each one sold — and a margin of 45%. And that’s despite using a display that’s more expensive than ever. iSupply figures Apple spends $90 on the panel and another $43 on the touch components.
$274 seems pretty inexpensive, but this isn’t the lowest figure iSupply has ever pinned on an iPad. Back in 2009, they estimated the bill of materials on the entry-level iPad to be about $230. The retail price on that model was also $499.
So while street prices have remained consistent, Apple’s no longer able to squeeze the same profits out of the iPad Air that it once could from its tablets. That’s got a lot to do with the rise of competitors’ tablets like the Kindle Fire and the Galaxy Tab and Galaxy Note.
Not that a 45% margin is anything to cry about. It’s still loads better than what PC manufacturers can scrape together from low-end laptops and desktops, and it translates to some serious cash when you look at the volume of iPads Apple continues to shift.
Source : Geek.com
