Apple iPad’s Components Prices were Exposured
Thanks to ISuppli Corp, a market research firm, we get some details about Apple iPad’s components prices, even though which is not very accurate but must not far from the truth. Then it is easy to estimate profit margins, with which we may learn something about how much it is going to reduce on the price in the future. Of course it is too early to say that, especially for those Apple fans who can’t wait to get one.
As to the lowest-priced, 16-gigabyte iPad, it has been estimated that Apple iPad cost as little as $259.60, which amounts to 52 percent of its retail price of $499. A high-end 64-gigabyte version of the iPad, which retails for $699, contains components that cost $348.10, according to ISuppli. Take $499 iPad for example, the distribution of the cost is list as follows:
Touch-screen Display: $95
Samsung Processor: $26.8
Aluminum Casing: $10.5
Flash Memory Chip: $29.5
Chip supplied by Bradcom Corp. and used to handle both Bluetooth and Wi-Fi wireless data connections: $8.05
Two other chips used to control the touch screen: $3.7
Chip supplied by Texas Instruments Inc. and used to help control the touch screen:$1.80
Chip supplied by Cirrus Logic Inc. and used for audio: $1.2
other unknown costs: $83.05
ISuppli hasn’t made detailed discription about the unknow parts. But one things is sure that it doesn’t include costs for intangible items such as software development, advertising, patent licensing or shipping. From the list, we can vaguely get more than 40 percent of the iPad’s cost is devoted on touch-screen display and other components of the computer’s user interface. That may be the big reason that most of us are attracted to fall in love with Apple.
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