New iPad 4G 16GB Costs an Estimated $310 in Parts

[JMcEntegart]

The 16GB 4G LTE iPad might cost you $649, but how much does it cost Apple?

New iPad 4G 16GB Costs an Estimated $310 in Parts : Read more

 

[maga]

apple,apple,apple,apple....,again its everywhere ,just STOP it i had enough OK .

 

[kawininjazx]

A profit of JUST 51%? That's not too bad considering a lot of other electronics manufacturers. Heck, we just had that article where Acer said they were breaking even with their entry level ultrabook.

 

[LuckyDucky7]

In other news, luxury technology that has few actual uses still costs a lot of money.

 

[siman0]

They will pay even if apple put apple 4000GSTX Type 2 on an old apple 2 and then anounce it as the god giving wonder device. Its from apple people follow that band waggon

 

[jaber2]

I call BS on cost, you can quote me on that.

 

[drwho1]

On other news Apple's R&D has been working on their very own Apple Pie which according to "sources"
will regenerate itself as you bite on it.

/sarcasm

 

[applerocks]

[citation][nom]maga[/nom]apple,apple,apple,apple....,again its everywhere ,just STOP it i had enough OK .[/citation]

No we will be back tomorrow to hold the gun to your head and force you to read Apple news!

 

[MKBL]

When a giant company like Apple orders its product to be produced in a facility at likes of FoxConn, it dictates how much margins the manufacturers would get. Apple also has a lot stronger buying power than regular high-tech companies, so their component prices are more likely to be cheaper than for others. Apple can control its profit margin by controlling those two fronts, parts and manufacturing, without much exposure to the usual risks of manufacturing and part sourcing.

 

[elkein]

[citation][nom]maga[/nom]apple,apple,apple,apple....,again its everywhere ,just STOP it i had enough OK .[/citation]
Wakey Wakey, the world is passing you by. I love my homebuilt machine, I advocate and tech support other people. But at work I'm tearing out numerous PC terminals, because iPads are replacing them. When one gets eaten by a vat of acid, no big deal, have another, there's a stack of backups.

 

[zzz_b]

I do not understand where they loose on the iPad 2.
The price is still $399 and the parts are less than $277. They make less profit, but do not loose anything. Also, iPad 3 being out, the iPad 2 is becoming obselete.

 

[AznCracker]

And they charge double?

 

[AznCracker]

And they charge double?

 

[danwat1234]

The battery in the 'new ipad' is only $8 more than the ipad 2's battery? 25wh vs 42.5wh, a 70% increase in energy capacity but only a 40% increase in part price. Unless they grabbed a great deal on batteries, while maintaining or exceeding the energy density of the ipad2 battery, this is bogus.

 

[jaber2]

Open the floodgates for referb iPad 2.

 

[beardguy]

Profit of "only 51%"

Maybe to Apple-loving Toms Hardware this isn't much. But doubling the price of the hardware, Something tells me most other companies don't even come close to this profit margin.

iPad = rip off

 

[syrious1]

The battery in the 'new ipad' is only $8 more than the ipad 2's battery? 25wh vs 42.5wh, a 70% increase in energy capacity but only a 40% increase in part price. Unless they grabbed a great deal on batteries, while maintaining or exceeding the energy density of the ipad2 battery, this is bogus.

Wait till the battery explosion reports start rolling in... =)

 

[LuckyDucky7]

@azncracker

Tablets and smartphones, while cool technology, don't have much of an actual purpose (browsing the web, making calls, and playing Angry Birds does not a useful device make).

So manufacturers can charge what they want and don't have any real incentive to push prices down. Laptops, on the other hand, actually have a real use and real demand exists for them (i.e. to do work, playing games is usually an afterthought)- which is why you see many of them at the 450-dollar price point since there's actual competition.

There isn't a real business use for them either, apart from replacing some paper and demonstrations- I don't believe elkein knows what he's talking about. You can't replace a PC with an iPad; PCs do work, iPads are screw-around devices whose primary capabilities center around media consumption, not production.

It's primarily why people don't choose tablets over laptops, especially when money gets tight.
Do you choose the cheaper do-it-all laptop, or do you pick the more expensive, less-capable tablet?
The answer, for many, is obvious.

 

[rosen380]

"Maybe to Apple-loving Toms Hardware this isn't much. But doubling the price of the hardware, Something tells me most other companies don't even come close to this profit margin. "

I think if you knew the markups that the electronics stores tacked on alone, you might re-think that statement. The difference is that When Best Buy sells a Samsung TV, Samsung takes a piece and Best Buy takes a piece... For Apple, since they are selling most of their stuff themselves, they get both of the pieces.

 

[wildkitten]

[citation][nom]LuckyDucky7[/nom]@azncracker Tablets and smartphones, while cool technology, don't have much of an actual purpose (browsing the web, making calls, and playing Angry Birds does not a useful device make).So manufacturers can charge what they want and don't have any real incentive to push prices down. Laptops, on the other hand, actually have a real use and real demand exists for them (i.e. to do work, playing games is usually an afterthought)- which is why you see many of them at the 450-dollar price point since there's actual competition.There isn't a real business use for them either, apart from replacing some paper and demonstrations- I don't believe elkein knows what he's talking about. You can't replace a PC with an iPad; PCs do work, iPads are screw-around devices whose primary capabilities center around media consumption, not production.It's primarily why people don't choose tablets over laptops, especially when money gets tight. Do you choose the cheaper do-it-all laptop, or do you pick the more expensive, less-capable tablet? The answer, for many, is obvious.[/citation]
Why I don't think a tablet will replace an actual laptop/desktop anytime soon, they actually do have quite a lot of use.

They are exploding on the POS (point of sale) scene. You can get very good, and very inexpensive POS apps, set up the ipad or Android tablet, and you have almost an instant business with inventory tracking, accounting information and everything. Receipts can be texted or emailed to customers, or a wireless receipt printer can be used. I've even seen iPod touches be used by waiters and waitresses when combined with a restaurants POS system.

A very cheap attachment can be gotten to allow the use of credit cards on a tablet, even a smart phone. So these are pointless devices.

Now that said, the price is ridiculous. Amazon did something that Apple was very stupid for not learning from. They sell the Fire at a slight loss and count on app and content sales for their profit. I think if Apple were to come out and sell a 64GB iPad for $200, they may lose some money, $110 initially but hardware costs would soon come down quickly, but the increase in sales would mean more people buying apps which would make up the difference, probably allowing for even more profits to be made over time.

 

[jn77]

You would think that at those prices, Apple would be smart and make a 128gb and 256gb version this time around.

 

[wildkitten]

[citation][nom]wildkitten[/nom]Why I don't think a tablet will replace an actual laptop/desktop anytime soon, they actually do have quite a lot of use.They are exploding on the POS (point of sale) scene. You can get very good, and very inexpensive POS apps, set up the ipad or Android tablet, and you have almost an instant business with inventory tracking, accounting information and everything. Receipts can be texted or emailed to customers, or a wireless receipt printer can be used. I've even seen iPod touches be used by waiters and waitresses when combined with a restaurants POS system.A very cheap attachment can be gotten to allow the use of credit cards on a tablet, even a smart phone. So these are pointless devices.Now that said, the price is ridiculous. Amazon did something that Apple was very stupid for not learning from. They sell the Fire at a slight loss and count on app and content sales for their profit. I think if Apple were to come out and sell a 64GB iPad for $200, they may lose some money, $110 initially but hardware costs would soon come down quickly, but the increase in sales would mean more people buying apps which would make up the difference, probably allowing for even more profits to be made over time.[/citation]
I mean not pointless devices.

Wish Tom's would incorporate an editing function.

 

[wildkitten]

[citation][nom]jn77[/nom]You would think that at those prices, Apple would be smart and make a 128gb and 256gb version this time around.[/citation]
What's even more dumb is the fact that it seems no one makes a tablet that allows a user to put in a SD card.

I think that was Amazons big mistake with the Fire, although since they bought some Playbook parts and put it together quickly for holiday sales, it's possible that the upcoming 2nd gen Fire may have one. Makes no sense to not allow users to be able to add their own memory considering phones have allowed this for years now, even before smart phones.

 

[beardguy]

[citation][nom]rosen380[/nom]"Maybe to Apple-loving Toms Hardware this isn't much. But doubling the price of the hardware, Something tells me most other companies don't even come close to this profit margin. "I think if you knew the markups that the electronics stores tacked on alone, you might re-think that statement. The difference is that When Best Buy sells a Samsung TV, Samsung takes a piece and Best Buy takes a piece... For Apple, since they are selling most of their stuff themselves, they get both of the pieces.[/citation]

You might be right. But let's not forget Apple sells their products in Best Buy, Walmart, and pretty much every other retailer too. The main point I was trying to make is (I've said it before in other posts) you have a novelty device with the iPad. It can basically play games, get online, and read ebooks. So even if the iPad's profit margin is not that high according to you. It's still way overpriced for what it is. Would you pay $600 for it?

I just thinks it's crazy people would pay that much for an iPad (or any other tablet). Of course, that's just my personal opinion.

 

[A Bad Day]

"Our profit margins are too low."

"Get Foxconn on the phone. Tell them that we demand lower cost per unit."