New iPad costs more to make, but Apple eats the difference

“Apple is taking a hit for new iPad customers,” Eric Mack reports for CNET. “That’s because the company’s bill of materials to make the next generation slates has apparently gone up, but the retail price has not.”
“According to an initial tear-down analysis by IHS iSuppli, the cost of parts found in the new iPad with 32GB of storage and 4G capability is 9 percent higher than that of an iPad 2 with a 3G radio,” Mack reports. “The report says the midrange new iPad costs Apple $364 for the parts, plus another $11 or so to assemble, for a grand total of $375, or just over 50 percent of the retail price of $729.”

Mack reports, “Not surprisingly, anticipated new features like Apple’s Retina display, 4G LTE, and a larger battery seem to be to blame for the increase in the bill of materials for the new iPad.”


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