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iPad 2 Bill Of Material Reaches $327

Component Research Analyst, IHS iSuppli, carried out its usual price analysis teardown after iFixit delivered his first; the latter dismantled the 16GB Wi-Fi version while iSuppli tore down a 32GB 3G version.

The Apple A5 system-on-chip has been built by Samsung Electronics and costs, iSuppli says, $14. The A4 was produced on a 45nm manufacturing process by Samsung and markings on the A5 seems to confirm this as well.

The 9.7-inch display is the most expensive component in the iPad and LG Display with a few other handpicked suppliers (ChiMei Innolux, Samsung) are believed to have been selected by Apple.

There doesn't seem to be any difference between the iPad and the iPad 2 in terms of image quality which leads us to believe that the same IPS technology is used on both. Display related costs have shot up significantly to $127 because of a different assembly method that uses glue and a thinner glass for the display.

Apple may have chosen more than one supplier to provide with the the NAND Flash memory as well; Toshiba was used in the iPad 2 and iSuppli's analysis showed that Samsung Electronics supplied the Flash for the iPad. As in the first iteration, the memory on the iPad 2 is manufactured by Elpida (Samsung Electronics supplied the DRAM found in iFixit's tear down). The cost of memory is expected to hit $65.70 which includes an MCP memory chip.

The iPad 2 still uses the same three Broadcom components found on the original model; The Wi-Fi, BT, FM module, Touchscreen controller and the Capacitive Multitouch Controller. Ditto for the STMicroelectronics based Gyroscope and accelerometer.

iSuppli also found out that the GSM version of the iPad is likely to cost more than the CDMA version because Qualcomm, which produces the wireless baseband chip for the Verizon-bound iPad 2, has integrated the GPS unit thereby shaving $1.50 off the price.

Finally, the two cameras are probably sourced from Aptina although, as it is now the case for most Apple products, several suppliers are likely to be involved.

Altogether, excluding the cost of software development, assembly, printed material, R&D, licensing etc, iSuppli estimates that the 32GB 3G model costs $327 for the AT&T version and $323 for the Verizon one.