$208 made by Apple on unit sale of iPad: iPad teardown

www.WirelessFederation.com/news: According to a teardown, Apple is set to make at least $208 on each new iPad sold and it is also estimated that the entry-level $499 model would generate a $208 margin, while the high-end $829 model would earn $446 per unit. The teardown is based on the going rate for component parts, manufacturing cost and built-in warranty repair costs.

The cost of 16GB Wi-Fi iPad would be around $270.50 to manufacture, plus $20 for warranty costs for a total of $290.50. The most expensive component is the 9.7-inch touch screen display, which costs around $100. The cost of in-house A4 chips is around $15 per unit.

With a cost of $290.50 and a selling price of $499, Apple’s profit margin will be 42.9% on each sale of the low-end device. On other models, that margin ranges from 48% to 55.1%, giving the iPad line as a whole a margin of around 50%.