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New iPad 4G 16GB Costs an Estimated $310 in Parts

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March 12, 2012 7:14:31 PM

apple,apple,apple,apple....,again its everywhere ,just STOP it i had enough OK .
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March 12, 2012 7:14:45 PM

A profit of JUST 51%? That's not too bad considering a lot of other electronics manufacturers. Heck, we just had that article where Acer said they were breaking even with their entry level ultrabook.
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March 12, 2012 7:14:50 PM

In other news, luxury technology that has few actual uses still costs a lot of money.
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March 12, 2012 7:18:55 PM

They will pay even if apple put apple 4000GSTX Type 2 on an old apple 2 and then anounce it as the god giving wonder device. Its from apple people follow that band waggon
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March 12, 2012 7:19:19 PM

I call BS on cost, you can quote me on that.
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March 12, 2012 7:32:44 PM

On other news Apple's R&D has been working on their very own Apple Pie which according to "sources"
will regenerate itself as you bite on it.

/sarcasm
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March 12, 2012 7:39:20 PM

magaapple,apple,apple,apple....,again its everywhere ,just STOP it i had enough OK .


No we will be back tomorrow to hold the gun to your head and force you to read Apple news!
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March 12, 2012 7:42:00 PM

When a giant company like Apple orders its product to be produced in a facility at likes of FoxConn, it dictates how much margins the manufacturers would get. Apple also has a lot stronger buying power than regular high-tech companies, so their component prices are more likely to be cheaper than for others. Apple can control its profit margin by controlling those two fronts, parts and manufacturing, without much exposure to the usual risks of manufacturing and part sourcing.
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March 12, 2012 7:44:54 PM

magaapple,apple,apple,apple....,again its everywhere ,just STOP it i had enough OK .

Wakey Wakey, the world is passing you by. I love my homebuilt machine, I advocate and tech support other people. But at work I'm tearing out numerous PC terminals, because iPads are replacing them. When one gets eaten by a vat of acid, no big deal, have another, there's a stack of backups.
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March 12, 2012 8:01:40 PM

I do not understand where they loose on the iPad 2.
The price is still $399 and the parts are less than $277. They make less profit, but do not loose anything. Also, iPad 3 being out, the iPad 2 is becoming obselete.
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March 12, 2012 8:09:23 PM

And they charge double?
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March 12, 2012 8:11:31 PM

And they charge double?
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March 12, 2012 8:13:20 PM

The battery in the 'new ipad' is only $8 more than the ipad 2's battery? 25wh vs 42.5wh, a 70% increase in energy capacity but only a 40% increase in part price. Unless they grabbed a great deal on batteries, while maintaining or exceeding the energy density of the ipad2 battery, this is bogus.
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March 12, 2012 8:18:31 PM

Open the floodgates for referb iPad 2.
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March 12, 2012 8:19:37 PM

Profit of "only 51%"

Maybe to Apple-loving Toms Hardware this isn't much. But doubling the price of the hardware, Something tells me most other companies don't even come close to this profit margin.

iPad = rip off
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March 12, 2012 8:23:57 PM

Quote:
The battery in the 'new ipad' is only $8 more than the ipad 2's battery? 25wh vs 42.5wh, a 70% increase in energy capacity but only a 40% increase in part price. Unless they grabbed a great deal on batteries, while maintaining or exceeding the energy density of the ipad2 battery, this is bogus.


Wait till the battery explosion reports start rolling in... =)
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March 12, 2012 8:25:42 PM

@azncracker

Tablets and smartphones, while cool technology, don't have much of an actual purpose (browsing the web, making calls, and playing Angry Birds does not a useful device make).

So manufacturers can charge what they want and don't have any real incentive to push prices down. Laptops, on the other hand, actually have a real use and real demand exists for them (i.e. to do work, playing games is usually an afterthought)- which is why you see many of them at the 450-dollar price point since there's actual competition.

There isn't a real business use for them either, apart from replacing some paper and demonstrations- I don't believe elkein knows what he's talking about. You can't replace a PC with an iPad; PCs do work, iPads are screw-around devices whose primary capabilities center around media consumption, not production.

It's primarily why people don't choose tablets over laptops, especially when money gets tight.
Do you choose the cheaper do-it-all laptop, or do you pick the more expensive, less-capable tablet?
The answer, for many, is obvious.
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March 12, 2012 8:36:48 PM

"Maybe to Apple-loving Toms Hardware this isn't much. But doubling the price of the hardware, Something tells me most other companies don't even come close to this profit margin. "

I think if you knew the markups that the electronics stores tacked on alone, you might re-think that statement. The difference is that When Best Buy sells a Samsung TV, Samsung takes a piece and Best Buy takes a piece... For Apple, since they are selling most of their stuff themselves, they get both of the pieces.
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March 12, 2012 8:46:12 PM

LuckyDucky7@azncracker Tablets and smartphones, while cool technology, don't have much of an actual purpose (browsing the web, making calls, and playing Angry Birds does not a useful device make).So manufacturers can charge what they want and don't have any real incentive to push prices down. Laptops, on the other hand, actually have a real use and real demand exists for them (i.e. to do work, playing games is usually an afterthought)- which is why you see many of them at the 450-dollar price point since there's actual competition.There isn't a real business use for them either, apart from replacing some paper and demonstrations- I don't believe elkein knows what he's talking about. You can't replace a PC with an iPad; PCs do work, iPads are screw-around devices whose primary capabilities center around media consumption, not production.It's primarily why people don't choose tablets over laptops, especially when money gets tight. Do you choose the cheaper do-it-all laptop, or do you pick the more expensive, less-capable tablet? The answer, for many, is obvious.

Why I don't think a tablet will replace an actual laptop/desktop anytime soon, they actually do have quite a lot of use.

They are exploding on the POS (point of sale) scene. You can get very good, and very inexpensive POS apps, set up the ipad or Android tablet, and you have almost an instant business with inventory tracking, accounting information and everything. Receipts can be texted or emailed to customers, or a wireless receipt printer can be used. I've even seen iPod touches be used by waiters and waitresses when combined with a restaurants POS system.

A very cheap attachment can be gotten to allow the use of credit cards on a tablet, even a smart phone. So these are pointless devices.

Now that said, the price is ridiculous. Amazon did something that Apple was very stupid for not learning from. They sell the Fire at a slight loss and count on app and content sales for their profit. I think if Apple were to come out and sell a 64GB iPad for $200, they may lose some money, $110 initially but hardware costs would soon come down quickly, but the increase in sales would mean more people buying apps which would make up the difference, probably allowing for even more profits to be made over time.
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March 12, 2012 8:47:53 PM

You would think that at those prices, Apple would be smart and make a 128gb and 256gb version this time around.
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March 12, 2012 8:51:45 PM

wildkittenWhy I don't think a tablet will replace an actual laptop/desktop anytime soon, they actually do have quite a lot of use.They are exploding on the POS (point of sale) scene. You can get very good, and very inexpensive POS apps, set up the ipad or Android tablet, and you have almost an instant business with inventory tracking, accounting information and everything. Receipts can be texted or emailed to customers, or a wireless receipt printer can be used. I've even seen iPod touches be used by waiters and waitresses when combined with a restaurants POS system.A very cheap attachment can be gotten to allow the use of credit cards on a tablet, even a smart phone. So these are pointless devices.Now that said, the price is ridiculous. Amazon did something that Apple was very stupid for not learning from. They sell the Fire at a slight loss and count on app and content sales for their profit. I think if Apple were to come out and sell a 64GB iPad for $200, they may lose some money, $110 initially but hardware costs would soon come down quickly, but the increase in sales would mean more people buying apps which would make up the difference, probably allowing for even more profits to be made over time.

I mean not pointless devices.

Wish Tom's would incorporate an editing function.
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March 12, 2012 8:54:34 PM

jn77You would think that at those prices, Apple would be smart and make a 128gb and 256gb version this time around.

What's even more dumb is the fact that it seems no one makes a tablet that allows a user to put in a SD card.

I think that was Amazons big mistake with the Fire, although since they bought some Playbook parts and put it together quickly for holiday sales, it's possible that the upcoming 2nd gen Fire may have one. Makes no sense to not allow users to be able to add their own memory considering phones have allowed this for years now, even before smart phones.
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March 12, 2012 8:56:52 PM

rosen380"Maybe to Apple-loving Toms Hardware this isn't much. But doubling the price of the hardware, Something tells me most other companies don't even come close to this profit margin. "I think if you knew the markups that the electronics stores tacked on alone, you might re-think that statement. The difference is that When Best Buy sells a Samsung TV, Samsung takes a piece and Best Buy takes a piece... For Apple, since they are selling most of their stuff themselves, they get both of the pieces.


You might be right. But let's not forget Apple sells their products in Best Buy, Walmart, and pretty much every other retailer too. The main point I was trying to make is (I've said it before in other posts) you have a novelty device with the iPad. It can basically play games, get online, and read ebooks. So even if the iPad's profit margin is not that high according to you. It's still way overpriced for what it is. Would you pay $600 for it?

I just thinks it's crazy people would pay that much for an iPad (or any other tablet). Of course, that's just my personal opinion.
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March 12, 2012 9:17:05 PM

"Our profit margins are too low."

"Get Foxconn on the phone. Tell them that we demand lower cost per unit."
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March 12, 2012 9:36:48 PM

The cost seems to have creeped up slightly. The retina display and LTE module is probably to blame.
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March 12, 2012 9:56:39 PM

So many apple haters here haha
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March 12, 2012 9:57:47 PM

51% is much more than most tech companies can hope for in a truly competitive market even with R&D costs to consider. Don't forget these tablets are made with slave labor in Foxconn factories. There is a saying amongst those working there.

"Women as men and men as machines"
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March 12, 2012 10:07:42 PM

drwho1On other news Apple's R&D has been working on their very own Apple Pie which according to "sources" will regenerate itself as you bite on it./sarcasm

infinite apple pie :D  om nom nom
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March 12, 2012 10:26:26 PM

How is it possible that the retina display can cost only $70? No laptop makers even use anything like that. The maker must be taking a bath on it....
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March 12, 2012 10:29:59 PM

I'm sick of hearing about 2G 3G 4G etc.. etc.. WiFi is good enough for me (minus the Apple part)
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March 12, 2012 10:41:03 PM

beardguyProfit of "only 51%" Maybe to Apple-loving Toms Hardware this isn't much. But doubling the price of the hardware, Something tells me most other companies don't even come close to this profit margin. iPad = rip off



Profit margin is not profit. For example, you own a bakery to bake breads and sell them to customer. Whet flour, sugar, and other ingredients per a package of white bread cost you $1, and you sell it for $2. Your profit margin is $1, but what about your profit? You have to subtract electricity, gas, water, rent, employee wage among others. Now let's say you've got $.90 for such expenses. What is your profit? $.1, not $1. That is even without considering finance cost. Some manufactured goods have about 30% of material cost compared to selling price. Do they translate it into 70% PROFIT? No way. Before getting outrageous over such outrageous number, think a little bit more.
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March 13, 2012 12:26:20 AM

apple = shit company . only jerks buy apple , a company that sues everybody around while producing the same hardware with new name and same features. i hate apple for their "bullying"... Apple= retard company for retard users.
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March 13, 2012 12:26:49 AM

P.S. They stolen android features in ios 5 and nobody sues them...
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March 13, 2012 12:47:00 AM

If Steve Jobs was alive, you can bet that 5% drop in profit margin would have been noticed and adjusted.
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March 13, 2012 12:54:06 AM

There does seem to be more Apple news lately than Samsung, Asus, LG, etc. Perhaps THG just wants to give the haters some fuel? I've never seen a THG article about how much it costs to build a Galaxy Tab 10.1 or a Transformer Prime. I wonder why.
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March 13, 2012 1:00:58 AM

Ihate everything with apple logo on it :D 
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March 13, 2012 1:01:27 AM

izajaszP.S. They stolen android features in ios 5 and nobody sues them...

Perhaps you should call Google and state your case?
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March 13, 2012 1:04:59 AM

maxinexusIhate everything with apple logo on it


That's certainly not a unique perspective here at THG forums...your views may change as you grow older...or they may not. To hate a piece of technology simply based on who its made by means that you could be missing out on some really neat gear that could make your life easier/more fun. ...but prejudice is like that.
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March 13, 2012 1:18:16 AM

kawininjazxA profit of JUST 51%? That's not too bad considering a lot of other electronics manufacturers. Heck, we just had that article where Acer said they were breaking even with their entry level ultrabook.


A profit?
Wuuut?

Thats just how much the materials cost.
You still have to pay for R&D, assembly, packaging, software, shipping and transport, storage, and finally the retailer wants cut too, no point in selling an iPhone for free.
After all of that, Apple still needs to turn a profit (thats after all the staff have been paid of course), pay tax on that profit, and hopefully throw a few cents back to investors.
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March 13, 2012 5:34:43 AM

but... but... Apple said it's new! so I have to buy it!
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March 13, 2012 6:42:34 AM

ok... ok... i have a few questions... and im getting annoyed...

the screen is 70$... why cant we get a 2560x1600 monitor alone for a dencent price?

or better yet camera, 6-12$... those pictures are good enough for what i want a camera for... why do i have to pay either 100$ for a bare minimum pos camera, or go into the kid friendly range for even worse and unusable cameras... all i want is a camera with a screen, a way to focus, and a button to take the picture... but i would be forced to pay over 100$ for anything decent...

so annoying.
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March 13, 2012 9:42:41 AM

magaapple,apple,apple,apple....,again its everywhere ,just STOP it i had enough OK .


Yet you not only clicked on the Apple link, but also commented on it, which helps keep Apple as a hot topic.............
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March 13, 2012 11:41:54 AM

God every day there‚Äôs several articles about apple, apple this apple that. Why is everything about apple and there over priced underpowered products :( 
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March 13, 2012 11:57:02 AM

"the screen is 70$... why cant we get a 2560x1600 monitor alone for a dencent price?"

Well, those expensive 2560x1600 monitors are also almost always 27" or bigger... which is 328 sq inches vs the 45 of the iPad... so we're talking monitors 7x the size that need circuitry and components to accept multiple video formats, housings, power supplies, assembly, R&D, etc. Those need to be packaged up, shipped around the world with several entities handling it [each having to mark it up].

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March 13, 2012 11:59:09 AM

alidanok... ok... i have a few questions... and im getting annoyed...the screen is 70$... why cant we get a 2560x1600 monitor alone for a dencent price?or better yet camera, 6-12$... those pictures are good enough for what i want a camera for... why do i have to pay either 100$ for a bare minimum pos camera, or go into the kid friendly range for even worse and unusable cameras... all i want is a camera with a screen, a way to focus, and a button to take the picture... but i would be forced to pay over 100$ for anything decent...so annoying.


Though i think their poor 51% profit margins are quite sickening, Just because it cost $310 in parts doesnt mean thats the bottom line, they have to pay their foxconn slaves to assemble it, and the programmers/engineers to design the firmware/IOS software as they didnt just put IOS 3 in some potting soil with miracle grow to grow their OS!
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March 13, 2012 12:03:40 PM

Also, if you are looking for a point and shoot at the quality of the iPad cameras-- you can get them for $39 at Walmart.

Add to the $6-12, a couple bucks for the small display, a processor, the housing, small motors for the optical zoom, USB cable, charger, etc. Just like with everything else, add in for assembly, packaging, transport, R&D, etc.

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March 13, 2012 12:06:40 PM

otacon72....and you won't why the US is falling way behind in math and science. 100% profit would denote doubling of the production cost.


Thanks for the math lesson. I understand how percentages and actual profit work. Why don't you address the real question instead of trying to be a smart ass. Would you buy an iPad? Do you think a tablet is worth $600 or more?

The iPad is overpriced regardless of how much actual profit Apple makes per unit. It's overpriced because it's a $600 novelty device.



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March 13, 2012 12:27:28 PM

What is anything worth? Things are worth what people would pay for them. For the tens of million iPad [and other non-budget tablets] owners, the tablets are worth $400-$830, because they traded currency with that value for the devices.




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March 13, 2012 1:40:56 PM

I preffer to pay less for a better tablet.
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!