New iPad 'more expensive' to make

2012-03-19 13:04

New York - A research firm that has taken apart a new iPad says it's more expensive to make than the previous version was when it launched a year ago.

The tablet's retail price is the same so that means Apple is making less from each sale. Since the first iPad, Apple has been pricing the tablet aggressively, making it hard for competitors to match its features at the same price.

The new iPad went on sale on Friday in 10 countries including the US, where it starts at $499.

Research firm IHS iSuppli said late on Friday that a model with 32GB of RAM and a cellular modem costs $364.35 to manufacture, 9% more than the corresponding iPad 2, which cost $335 to make a year ago.

  • S - 2012-03-19 13:27

    I'm still trying to figure out what a tablet is useful for. It's just a large browser, and you've already got one on your laptop and one on your smartphone. why pay a s+!tload of money for yet another one?

      jurgen.eksteen - 2012-03-19 13:48

      I'm involved in the Wedding Industry and it is quite useful if you need to demonstrate video or photos rather than carrying a "clunky" laptop around with you that you need to boot up and wait until every program is loaded after startup before you can start your demonstration. It is compact and has roughly 80% of the functionality of a laptop in my opinion.

      S - 2012-03-19 14:01

      Jurgen, you could buy one of the small notebook computers for roughly one-third the price of an iPad, have all the "functionality" you like in an iPad, but at the same time have 100% laptop functionality. PS: It's the 20% functionality missing in an iPad that relegates it from being useful to an expensive toy.

      jurgen.eksteen - 2012-03-19 15:27

      @Stirrer, you still have that annoying waiting time when turning it on which stalls a meeting sometimes. I'm just saying that I find the iPad (other tablets as well) more useful for the application I use it for and that's the gap market it fills.

  • Oneant - 2012-03-19 15:08

    and when they realize its about the margins on software and not hardware, a whole bunch of shiny shoe people slap their foreheads and wished they didn't let that sh*t hot developer go because they where too busy living the high life - which is why Apple brings it and the rest dont.

  • Tokzik - 2012-03-20 10:49

    32GB of RAM? Wow!

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