Apple's iPad Air 2 manufacturing costs stay level despite new technology - report

The most expensive 128-gigabyte LTE-enabled model, which retails for $829, is thought to book $358 in manufacturing costs. The figures were released Tuesday by market research firm IHS and first noted by Re/code.

The display continues to be the most costly part, estimated at some $77, but that price would mean Apple is paying approximately $13 less for each display than they did for the displays in the first-generation iPad Air. That drop is likely attributable to Apple's growing economies of scale, as the iPad Air 2's display largely matches that found in its predecessor.

"It's basically the same display from before, the same size, the same resolution, but with an anti-reflective coating added," IHS analyst Andrew Rassweiler told the publication.

The $11 Apple is believed to have spent on cameras for the device is slightly higher than last year's model, likely thanks to the upgraded rear shooter.

Overall hardware profit margins for the iPad Air 2 lineup are thought to be between 45 percent and 57 percent, depending on the configuration. It is unclear whether IHS's numbers include ancillary costs, such as marketing and support.