More iPad Cost Estimates Show Room for Price Cut
The mid-range iPad 3G to be the biggest money maker.
iSuppli, the firm that loves to do teardowns of new gadgets to find out just how much they cost to put together, last week revealed its estimates for the Apple iPad.
The firm found that the lowest-end iPad will cost Apple $219.35 in total materials and $10 in manufacturing costs, equalling a $229.35 total for the 16GB Wi-Fi-only model. While Apple is expected to be getting more than double that back from the $499 price tag, the most profitable model is the mid-priced 32 GB iPad with 3G wireless capability, which will contain $275.95 worth of components and other materials and cost $11.20 to manufacture, iSuppli estimates. This will retail for $729 in stores.
Keep in mind that these are present-day estimates without exposure to actual hardware, but it certainly shows that there's a comfortable buffer (even after R&D and other overhead costs) for Apple to drop price.
In fact, the Wall Street Journal noted that Apple expressed intentions that it plans to remain "nimble" on iPad pricing (read: price drops if the competition heats up or there is lesser-than-expected demand).
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i would say that the cost of R&D always makes it expensive for early adopters but there just wasn't any R&D into the iPad. its just an giant expensive ipod touch
"While Apple is expected to be getting more than double that back from the $499 price tag, the most profitable"
... yes? Go on?
They should be moving the price up over $1000, I'm sure people that want it would actually pay that much.
Apple to drop the price for its new and much hyped product? very unlikely. but i'd let them have the chance to proof me wrong...
I would get it for its e-reader feature if it truly can be read like an e-ink screen otherwise no.
If the internal Apple memo is anything to go by, avoid buying it until they do cut the price, or go by the "wait for the second gen" rule. Or just get a cheaper netbook that does so much more, just sayin.
waiting for full 1080 and larger ssds before i would by one myself and ps not running apple sofware
Surprise surprise... Apple making more money on a crappy product that only idiots will buy...
I'm sure Apple had pricing changes all worked out in advance. Take what the market can bear. Adjust if necessary and still make a profit.
Sure if people actually buy it
[Course Apple fanatics will buy them; no offense]
Yes there was R&D with the Ipad, not as much as starting from ground zero but they did alot of
planning and developing with the Ipad. They had to come up with a new Chip " A1". They had to
research what size and style screen, they had to develope display formats and styles amongst other
things. They have spent alot of time R&D the Ipad don't kid yourself.
wow. just plain sloppy.
If there was just so much R&D for the iPad to justify the cost, why not have a more capable system that can run OSX? And not the iPhone software?
Now I own an iPhone, and I will be the first to say I really enjoy it..as a phone, but it is a phone operating system, and I don't see how the same OS is viable for a tablet or any type of serious computing. Absolutely no multitasking capabilities.
Would you like to hire me as a proofreader?
Apple to drop the price for its new and much hyped product? very unlikely. but i'd let them have the chance to proof me wrong...
And they did, with the iphone.
overpriced garbage, I'm so sick of reading about Steve Jobs and the stupid waste of my internet reading time, iPOS
overpriced garbage, I'm so sick of reading about Steve Jobs and the stupid waste of my internet reading time, iPOS
+1^
o they are really looting people, i am not going to waste my 200$ just for their profit of 1 ipad, cya apple.
I would get it for its e-reader feature if it truly can be read like an e-ink screen otherwise no.
No, it can't.
Thank for stop talking about iPad.
It's just a sucker pad with low specs...
Job and media talk so much about that SUPER POOR PAD, my ears are about to fall down.
no way Apple is going to lower the price.
Steve needs to continue his swing dance lessons to compete in next season's dancing with the stars.
What R&D is there to speak of?
The processor is just an ARM core, and they almost completely reused existing OS code... all that's left to do is choose a few components and mash them together on a board, and make a few tweaks to the OS to support the larger screen and such.
Anyone who justifies the $400+ dollars for this thing is out of their mind. Or a fanboy. Probably the latter.
Plz, no more iFail news.
While they may know the material "cost", it is apparent they don't have a clue about finding true LOH costs. I am not saying the Ipad pricing is good, bad, or perfect. You price something at whatever people will pay for it. But the costing these people are coming up with in no way represents the true cost of manufacturing.
$729 for a 10" ipod touch? Yeah right.
They are going to be able to make a killing on these if the "get an iPad for 29.95 /month with unlimited data plan" is true.
They should offer the carriers a cut on app store sales to help subsidize getting the iPad out there to lower prices further.
If people have to pay $500+ upfront iPad isn't going to happen. But if people can get an iPad for a reasonable monthly price, it will happen, and the hardware profit (which is high) will still be nothing in comparison to the profit made from the app store.
Surprise surprise... Apple making more money on a crappy product that only idiots will buy...
I love how you come to the conclusion that anyone who buys this product is an idiot. Is it because the product is expensive? Or just because it is made by Apple? Do you also consider anyone who shops at Whole Foods instead of Walmart an idiot? Or someone who buys a Lexus instead of a Toyota an idiot? I doubt it. It's just the Apple logo, and you are actually the idiot.
That's actually less margin than I would have expected. I mean, the overhead is going to be significant and profits probably less than the iPhone. After all, Apple too has to pay for their expenses beyond just plain material and labor going directly into building it. To expect they sell a new product near cost is unrealistic (and destructive to any company). I would similar structures for similar devices.
I love how you come to the conclusion that anyone who buys this product is an idiot. Is it because the product is expensive? Or just because it is made by Apple? Do you also consider anyone who shops at Whole Foods instead of Walmart an idiot? Or someone who buys a Lexus instead of a Toyota an idiot? I doubt it. It's just the Apple logo, and you are actually the idiot.
another stockholm syndrome idiot. i actually tried typing an explanation on the differences, but then how do you explain things to mindless drones?
this debate of what the difference between Apple and other companies is all over the web. but your mind is so narrow you can't take anything in.
apple fanbois are the biggest idiots in world.
I think that the ipod touch sells for as much as $400 in Canada. What would you expect a bigger touch to sell for? Unlike most people commenting, I am actually in the market for a larger media player for air travel. I will be waiting until the last minute just in case something new and better comes out.
What I need out of a player is:
At least 64 gigs (32 would suffice if it had a usb port)
7"-9" screen.
an OS that will sync nicely with Windows 7 media center.
Good battery life.... 5-6 hours at least.
Replaceable battery or some sort of charging accessory for air travel.
The ability to play older games (Red alert 2,Doom 3,need for speed, etc.)
USB port.
The ipad won't cut it for me.
But $500 is not too much considering the ipod's pricing.
I am leaning towards the archos 9 or a Asus Eee PC T91MT .
another stockholm syndrome idiot. i actually tried typing an explanation on the differences, but then how do you explain things to mindless drones?this debate of what the difference between Apple and other companies is all over the web. but your mind is so narrow you can't take anything in.apple fanbois are the biggest idiots in world.
Speaking of mindless drones...
It's hilarious that you would classify me as an Apple fanboy. Basically, to rabid fanboys like yourself, anyone who doesn't bash Apple and anything they make or do MUST be a fanboy. It's beyond incomprehensible for someone like yourself to imagine anyone having the ability to be objective and see the good and bad of both MS and Apple. I have no desire to own an iPad but to make the statement that "anyone who buys it is an idiot" shows just how much of an idiot you actually are. You think in generalities.
I own an iPhone and a Mac Mini. I also own a custom assembled desktop and a Thinkpad laptop. Call me a fanboy. I get the best of both worlds. And you say my mind is narrow. Funny.