hardware-costs

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  • iPad component cost re-estimated

    by 
    Mike Schramm
    Mike Schramm
    04.08.2010

    Now that the iPad is actually out and we know what's in it, iSuppli has adjusted its guesstimate for the actual price of the hardware to US$259.60. That's significantly more than the original estimate that was made a while back; iSuppli says that the iPad uses more silicon chips than expected, including three separate chips to control the touchscreen itself. That price is the 16GB Wi-Fi model (that retails for $500); the higher memory models obviously cost more (up to $348.10 for the 64GB Wi-Fi model). Still, Apple is making a solid profit on the per-unit price. There's no question that the iPad will make money no matter what, but there are tons and tons of other factors to include in this. On the flip side of the equation, this price doesn't include shipping out iPads to all of Apple's various stores, money to pay employees, and of course, all of the backend software and hardware design that went into actually creating these devices in the first place. Of course, in terms of profit, the price that you pay for the device at checkout is just the beginning; there's a lot of money also flowing over the App Store, and in iBooks and so on. Just looking at the hardware costs won't get you very far. Apple has money moving all over the place around this device.