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More iPad Cost Estimates Show Room for Price Cut

By - Source: Tom's Hardware US | B 32 comments

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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  • 22 Hide
    duckmanx88 , February 18, 2010 12:17 AM
    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
  • 21 Hide
    Bert R , February 18, 2010 12:18 AM
    "While Apple is expected to be getting more than double that back from the $499 price tag, the most profitable"

    ... yes? Go on?
  • 12 Hide
    El_Capitan , February 18, 2010 12:32 AM
    They should be moving the price up over $1000, I'm sure people that want it would actually pay that much.
Other Comments
  • 22 Hide
    duckmanx88 , February 18, 2010 12:17 AM
    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
  • 21 Hide
    Bert R , February 18, 2010 12:18 AM
    "While Apple is expected to be getting more than double that back from the $499 price tag, the most profitable"

    ... yes? Go on?
  • 12 Hide
    El_Capitan , February 18, 2010 12:32 AM
    They should be moving the price up over $1000, I'm sure people that want it would actually pay that much.
  • 6 Hide
    arlandi , February 18, 2010 12:48 AM
    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...
  • 3 Hide
    zoemayne , February 18, 2010 12:57 AM
    I would get it for its e-reader feature if it truly can be read like an e-ink screen otherwise no.
  • 12 Hide
    tipoo , February 18, 2010 1:13 AM
    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.
  • 4 Hide
    Johny-O , February 18, 2010 1:35 AM
    waiting for full 1080 and larger ssds before i would by one myself and ps not running apple sofware
  • 12 Hide
    dman3k , February 18, 2010 1:49 AM
    Surprise surprise... Apple making more money on a crappy product that only idiots will buy...
  • 1 Hide
    JohnnyLucky , February 18, 2010 1:55 AM
    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.
  • 2 Hide
    wintermint , February 18, 2010 2:06 AM
    Sure if people actually buy it :)  [Course Apple fanatics will buy them; no offense]
  • -1 Hide
    hakesterman , February 18, 2010 2:22 AM
    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.


  • 0 Hide
    darkknight22 , February 18, 2010 2:33 AM
    Quote:
    While Apple is expected to be getting more than double that back from the $499 price tag, the most profitable


    wow. just plain sloppy.
  • 4 Hide
    ominous prime , February 18, 2010 2:46 AM
    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.
  • 6 Hide
    deadlockedworld , February 18, 2010 2:54 AM
    Would you like to hire me as a proofreader?
  • 2 Hide
    lejay , February 18, 2010 3:16 AM
    arlandiApple 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.
  • 5 Hide
    pelomixa , February 18, 2010 6:00 AM
    overpriced garbage, I'm so sick of reading about Steve Jobs and the stupid waste of my internet reading time, iPOS
  • 3 Hide
    saran008 , February 18, 2010 6:02 AM
    pelomixaoverpriced garbage, I'm so sick of reading about Steve Jobs and the stupid waste of my internet reading time, iPOS

    +1^
  • 0 Hide
    sunzeal , February 18, 2010 8:47 AM
    o they are really looting people, i am not going to waste my 200$ just for their profit of 1 ipad, cya apple.
  • 0 Hide
    doc70 , February 18, 2010 10:30 AM
    zoemayneI 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.
  • 0 Hide
    Miharu , February 18, 2010 11:55 AM
    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.
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