Slash Lane
iSuppli Corp. said the multi-touch 9.7-inch display on the iPad could cost around $80, while its custom-designed A4 processor, believed to be manufactured by Samsung, would cost about $17 per unit — $2 more than the chip that lies in the iPhone 3GS. In addition, the 16GB of memory is estimated to cost about $29.50.
With a total parts cost of $219.35, that's well below the starting price of $499 for the 16GB iPad, which does not offer 3G connectivity. Factoring manufacturing costs add just $10 to the total cost of the low-end model, bringing it to $229.35.
However, the $499, 16GB model is also predicted to be the least profitable version of the hardware for Apple to sell.
iSuppli projects Apple will earn the most from selling the 32GB version with a built-in 3G radio, which will sell for $729. The combined materials and manufacturing costs for that model is estimated to cost Apple just $287.15.
The findings lend support to a recent report that Apple could lower the price of the iPad if initial sales are not as strong as the company hopes. That information was revealed this week after executives from the Cupertino, Calif., company allegedly told one analyst. Management allegedly said it "will remain nimble" in pricing the iPad.
Arguably the biggest surprise of the iPad's unveiling was its $499 starting price. Previously, analysts had expected the new touchscreen tablet to cost around $1,000.
3G connectivity on the hardware carries a $130 premium, making the 16GB model $629. The iPad will offer up to 64GB of capacity which, when paired with a 3G radio, will make the device cost $829 at its highest price. The 64GB of capacity will cost Apple an estimated $118 per unit, iSuppli said.
Wesley Hilliard
Andrew O'Hara
Malcolm Owen
Christine McKee
Andrew Orr
209 Comments
Is that greed or what?
Expect it at $399 by July 1st.
Is that greed or what?
Expect it at $399 by July 1st.
I never understood this complaint. We live in a capitalist society, companies have the right to charge whatever the market will bear. Microsoft charges 200-300 dollars for a Vista service pack called Windows 7. Adobe charges almost 2,500 dollars for CS4. GM charges you more for a Cadillac than a Chevrolet. Apple has every right to charge whatever they want for their products. Would I like to see it cheaper? Of course. I'd like to just be given one, but that's not how things work.
I never understood this complaint. We live in a capitalist society, companies have the right to charge whatever the market will bear. Microsoft charges 200-300 dollars for a Vista service pack called Windows 7. Adobe charges almost 2,500 dollars for CS4. GM charges you more for a Cadillac than a Chevrolet. Apple has every right to charge whatever they want for their products. Would I like to see it cheaper? Of course. I'd like to just be given one, but that's not how things work.
tekstud is a well know troll so anything he reads on here he'll troll about
just add him to your ignore list and be done with it...
This about the second or third time a report like this has posted. Even this report is posted on several sites and I have made my comment on Mac 9 to 5. I don't know which of these posted first, but I responded to the first one I read.
This is insane. I don't care paying that much, I really don't, for a good Apple product but damn! No camera, no multitasking in the OS, no connectivity (you have to buy adapters!) and a long list of other 'no's make the iPad a much less attractive product every day.
Really, the iPad is a great product in diapers... I'll wait to get at least the teenage version