Cost To Manufacture iPad

The entry model of the Apple iPad has been tagged at a price of $499. How much does it cost to make an entry level iPad? Here is a Bill of Material analysis conducted by Broadpoint AmTech analyst Brian Marshall for the $499 iPad.

[TABLE=20]

Brian Marshall also predicts the total cost of the other devices as follows

iPad 32GB : $296.00
iPad 64GB : $347.00
iPad 16GB 3G : $286.50
iPad 32GB 3G : $312.00
iPad 64GB 3G : $363.00

The implied gross margin is the highest for iPad 32GB with 3G at 55.1%

3 thoughts on “Cost To Manufacture iPad”

  1. Where is the price for software, skilled labour, packaging, shipping, etc. ? I think the “cost to manufacture iPad” is slightly higher than ~290$
    anyway nice post!

  2. Hi Pascal, as you would find from the list, manufacturing and packaging would cost $10 each. I believe $20 per unit should be a good estimate for manufacturing and shipping related costs. What do you think?

  3. Also, you must take into account the R&D costs, marketing costs, distribution, network maintenance (app store), and myriad other things not as visible as the cost of hardware.

Comments are closed.