By Tekedia Editors March 17, 2012 Leave a Comment

Apple Inc.’s new iPad models are more expensive to produce than the iPad 2 at time of launch, though they carry the same price points, according to market research firm IHS iSuppli.

 

 

The 32-gigabyte (GB) version of the third-generation iPad, equipped with 4G wireless capability, carries a bill-of-materials (BOM) of $364.35, according to a preliminary teardown analysis performed by market research firm IHS iSuppli.



The cost to produce the 32GB, 4G capable version of the new iPad totals $375.10, including $10.75 manufacturing costs, according to IHS. The BoM of the 16GB 4G LTE version amounts to $347.55, and the 64GB version is estimated at $397.95, according to IHS.

 

 

The $364.35 BoM represents 50 percent of the $729.00 retail price of the 32GB LTE version of the new iPad, IHS said.

 

 

The very lowest-end version of the new iPad, with 16GB memory and no LTE, carries a combined BoM and manufacturing cost of $316, IHS said. The highest-end model, with 64GB memory and integrated LTE, has a total BOM and manufacturing expense of $408.70, according to IHS.

 

 

The 32GB LTE model’s BOM is nearly 9 percent higher than an iPad 2 equipped with 32GB and 3G wireless, which carried a cost of approximately $335 at the time of product launch, IHS said. Major factors driving up the BoM include the addition of the high-resolution Retina display, LTE wireless and a larger-capacity battery, according to the firm.

 

 

“The Retina display represents the centerpiece of the new iPad and is the most obvious enhancement in features compared to previous-generation models,” said Andrew Rassweiler, senior principal analyst of teardown services at IHS, in a statement. “The first two generations of the iPad employed the same type of display—a screen with resolution of 1,024 by 768 pixels. For the third-generation new iPad, Apple has taken a significant step up in display capabilities and expense, at four times the resolution and 53 percent more cost.”

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