The New iPad Costs Apple More Money to Build than Previous Models

March 11, 2012 10:01 pm 0 comments

Months and weeks before Apple officially announced the price of the new iPad, there was a lot of speculation from critics that Apple would probably increase the price due to the more expensive retina display screen.

Fortunately for Apple fans, the new iPad doesn’t come with a higher price tag than previous models. But this isn’t the best news for Apple, especially since the new iPad allegedly costs them over 5% more money to make, which obviously means less profit.

A preliminary breakdown of the new iPad from UMBTechInsights suggests that the 16GB WiFi 4G version costs Apple around $310 to make. New parts like the Retina display, A5X chipset and 4G LTE are more expensive parts from the new iPad than the previous iPad 2 parts.

These costs are only estimates of how Apple really pays for the new iPad. These estimates don’t necessarily account for costs like assembly, building, shipping, marketing etc. It’s not yet clear exactly how much profit Apple makes off of each iPad sale, but I would guesstimate that it’s somewhere between $100-300 dollars per new ipad sold.

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