Apple makes less profit on new iPad
Tennessean.com recently reported that Apple is making less profit from each new iPad they produced than it did with the previous model a year ago, citing an analysis from the firm’s own research team.
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On the day when the new iPad went on sale in the U.S., IHS iSuppli took apart a unit and found that the components are more expensive than those found in the iPad 2. The new iPad was introduced in several models and is available for sale starting from US$499, apparently the same price as the iPad 2 when it was launched a year ago.
Apple has priced the new iPad aggressively making it difficult for competitors to match its specifications at the same price. According to iSuppli a new iPad with 32 GB of RAM and a cellular modem, costs $363.35 to manufacture an increase of about 9 per cent from the $335 cost to produce the iPad 2 a year ago. Meanwhile, the corresponding version of the first iPad cost $276 to manufacture in 2010. It is apparent that the higher specifications offered in the new iPad such as the high-resolution Retina display and a larger battery made it much more expensive. It also has four times as many pixels as offered in the iPad 2.
iSuppli stressed that the Retina display costs Apple US$87 and an additional US$40 for the touch sensitive display. The new battery has a staggering 70 per cent more capacity than the older model but the new display consumes all that extra power so it fell back into similar strength as the old one. The use of new cellular modem in some models (the more expensive model) such as the fast “4G LTE” networks also contributed to the cost increase.
iSuppli reported that most of iPad components were supplied by Samsung Electronics. It supplied displays, processors, battery and even flash memory storage. iSuppli remarked, “In fact half of the new iPad’s bill of materials may be for Samsung components”
Apple and Samsung decline to comment on their business relationships. Samsung also makes its own tablets and they proved to be more successful than most competitors.
| Via: Tennessean |
Apple makes less profit on new iPad
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