Cost To Manufacture iPad
Posted: January 30th, 2010.
The entry model of the Apple iPad has been tagged at a price of $499. How much does it cost to make an entry level iPad? Here is a Bill of Material analysis conducted by Broadpoint AmTech analyst Brian Marshall for the $499 iPad.
| Equipment | Price |
| Application Processor | $15.00 |
| Video Processor | $5.00 |
| DSP | $5.00 |
| Memory (NAND) | $25.50 |
| Power mgmt | $2.00 |
| Audio Codec | $1.00 |
| 3G Power amplifier | $2.00 |
| GSM Power mgmt | $1.50 |
| Mobile DRAM | $9.00 |
| PCB Passives | $8.00 |
| Accelerometer | $2.00 |
| Touchscreen Controller | $2.00 |
| LCD Display | $100.00 |
| Battery | $30.00 |
| Aluminium Casing | $25.00 |
| Packaging | $10.00 |
| Manufacturing | $10.00 |
| WiFi 802.11 | $7.00 |
| Bluetooth | $3.00 |
| Magnetometer | $3.50 |
| Misc. | $20.00 |
| Total | $290.50 |
Brian Marshall also predicts the total cost of the other devices as follows
iPad 32GB : $296.00
iPad 64GB : $347.00
iPad 16GB 3G : $286.50
iPad 32GB 3G : $312.00
iPad 64GB 3G : $363.00
The implied gross margin is the highest for iPad 32GB with 3G at 55.1%
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Comments
Comment from Anand
Time February 4, 2010 at 10:19 am
Hi Pascal, as you would find from the list, manufacturing and packaging would cost $10 each. I believe $20 per unit should be a good estimate for manufacturing and shipping related costs. What do you think?
Comment from zomBeej
Time February 10, 2010 at 7:27 pm
Also, you must take into account the R&D costs, marketing costs, distribution, network maintenance (app store), and myriad other things not as visible as the cost of hardware.
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Comment from Pascal
Time February 4, 2010 at 9:52 am
Where is the price for software, skilled labour, packaging, shipping, etc. ? I think the “cost to manufacture iPad” is slightly higher than ~290$
anyway nice post!