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The New iPad Proves To Be Even More Profitable Than Previous Versions

As revealed by the bill of materials and manufacturing costs, Apple is making massive margins with the latest iPad released on the market.

The news comes from the IHS iSuppli team, who put together a preliminary cost analysis. The iSuppli press release points out that "these teardown assessments are preliminary in nature, account only for hardware and manufacturing costs and do not include additional expenses such as software, licensing, royalties or other expenditures."

The list reveals that the new iPad is even more profitable than its predecessor is. For instance, for the lowest iPad 2 model (with WiFi support and 16GB storage) currently on the market, Apple pays for materials and manufacturing at roughly $245, which means that the profit is around $155. Comparatively, for the third generation iPad with 16GB and WiFi, Apple covers a $306 bill of materials (BOM) as well as $10 production costs and sells the device for $499, which means a profit of $183.

For the more expensive models, Apple is gaining more money. For example, the BOM and manufacturing costs of the WiFi and 4G enabled third generation iPads amounts to $347.55 (16GB version), $375.10 (32GB) and $408 (64GB).

Radu has been working as a freelance writer for more than five years and has been blogging around since 2004. He is interested in anything Apple as well as gaming and mobile applications.