Apple Makes 51 Per Cent Margin On New 4G LTE iPad

Margins on the new iPad (4G LTE version) have apparently dropped according to an estimated bill of material comparison carried out by UBM TechInsights; the analyst firm guesstimated that the price of components for the third generation iPad 16GB has risen to $310.

The first generation iPad 3G 16GB had a BOM of $271 while the iPad 2 3G 16GB had a BOM of $276 in March last year and $248 this year. In all cases, Apple made more than 50 per cent margin on the tablets.

The most expensive part remains the display hitting $95 or 30 per cent of the Bill of Material. The cost of the battery has also risen by another third while that of the camera jumped from $5 to $12.50. Other significant cost centres include the processor ($28), the baseband & transceiver ($21) and the SDRAM ($8.50).

The price of flash has slumped by around a third since the first iPad 3G was launched while the cost of non-electronic parts (chassis, screws, cabling) also dropped by 20 per cent or so, perhaps due to Apple's bigger bargaining power since the initial iPad release.

The new iPad has 1GB RAM, a bigger battery (11.18Ah), 4G LTE wireless connectivity, a five megapixel camera and a system on chip with a better graphics subsystem believed to be a PowerVR SGX543MP4.