Tuesday, November 5, 2013

iPad Air Cost $274, Sell $499

Apple's newest tablet, the iPad Air, sells for anywhere between $499 and $929, and the iPad has been sold in this general price range for about as long as it has been around. A new teardown and cost analysis report by IHS iSuppli (reported by AllThingsD) estimates that the tablet only costs between $274 and $361 to build, delivering profit margins between 45 and 61 percent for Apple.

The tablet's 9.7-inch 2048×1536 display is the single costliest component of the tablet at about $133 ($90 for the display itself and $43 for the touch components). The cost has been driven up by the same changes that have allowed Apple to make the tablet thinner and lighter than the previous Retina iPad: fewer layers of glass are required to enable touch, and fewer LEDs are required to light the screen. iSuppli reports that 36 LEDs are used to light the new display rather than the 84 LED lights used in the earlier Retina iPads. Layers of optical film are used to dissipate the light from those LEDs, reducing the number of lights needed and enabling Apple to shrink the battery.

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From Ron Maltiel phone

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