ISuppli Estimates IPad Profit Margins

Posted: Feb 10 2010, 12:00pm CST | by , Updated: Aug 11 2010, 7:26pm CDT, in News | Apple

 
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One of the most shocking moments of my career was Apple's announcement that the iPad price would start at just $499. For a company like Apple, a price that low seemed downright cheap. Immediately, speculation began that Apple was taking huge losses on the low-end iPads in order to boost market-share and sell peripherals. Now iSuppli has put together an estimated list of iPad costs that paints a very different picture.

The basic, 16 GB non-3G iPad costs a total of $229.35 to make. That means almost $270 in profit for every basic iPad sold. Apple isn't exactly 'taking a wash' on the low-end models. The best deals (for Apple) are the 32 GB and 64 GB 3G models, which each net over $400 in profit. Now those reports that Apple will cut iPad prices if sales are sluggish make a little more sense.

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The Author

<a href="/latest_stories/all/all/5" rel="author">Robert Evans</a>
The excitement about new smartphones, tablets and anything mobile drive Robert to unearth the latest rumors and developments in this fast moving space. He adopted 4G as soon as it become available and knows where the mobile market is going.
Robert can be contacted directly at robert@i4u.com.

 

 

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