Tech research firm iSuppli aims at always breaking down new launched products or gadgets for figuring out how much they cost to make. The latest in-demand gadget was just-launched iPad, which reaps Apple plenty of profit per unit sold, according to iSuppli’s approximation.
The firm researched a 16GB Wi-Fi version of Apple’s iPad without 3G capabilities, a model that currently sells for $500, and estimated that the component parts for each unit cost Apple about $251. Throw in the cost of manufacturing it may have cost Apple $260 to make each 16GB iPad, according to their research. However, that number does not include other costs to Apple, including software, royalties, and licensing fees iSuppli.Major of the iPad’s component costs went in making the device appealing to use, said iSuppli chief analyst Andrew Rassweiler, who supervised the analysis of the product. More than 40 percent of the iPad’s cost is devoted to powering its touch-screen display and other machinery of the computer’s user edge “what you see with your eyes and what you feel with your fingers,” he said. The distinctive aluminium casing on the back of the device contributed about $10.50 to cost of materials.
For comparison, the Apple iPhone 3G S researched by iSuppli last summer, was found to have $172.46 worth of raw materials. With an estimated manufacturing cost of $6.50, its grand total came to $178.96 which means about $80 or 31 percent less than the iPad. The analyses of iSuppli’s are markedly different from the company’s estimation of another piece of popular consumer electronics, the PlayStation 3. When Sony first launched its console in North America at $500 and $600 price points, iSuppli estimated that the company was losing hundreds of dollars on each system, hoping to make the loss up over time through its cut of software and accessory sales.
Tags: 3g, accessory sales, apple iphone, casing, chief analyst, component costs, estimation, fi version, grand total, iPad, isuppli, raw materials, royalties, touch screen