05 Apples new iPads run a higher bill of materials, offer better value

It's been revealed that Apple's bill of materials (BOM) on the 'new iPad' is heftier than some may have previously thought; this despite Apple keeping its latest range of tablets at the same respective price points as their predecessors.

It's been revealed that Apple's bill of materials (BOM) on the 'new iPad' is heftier than some may have previously thought; this despite Apple keeping its latest range of tablets at the same respective price points as their predecessors.

The 16GB 4G version of the latest iPad is estimated to be US $310 which is substantially higher than the 16GB iPad 2 (US $270). The biggest factor in the higher cost of build would inevitably be due to the higher res (2048 x 1536) screen, estimated to come in at about US $70 alone (about $20 higher than the iPad 2's). Then there's other factors like the bulkier battery (US $8 higher), the US $5 dearer camera and the A5X processor at US $28 (close to double that of the A4 used in the first-gen iPad).

The lower margins as a result of the increased BOM equate to a 6% dip from 57% for the original iPad to 51% on the new model. So if you're thinking iPad pricing is still way too inflated, at least you can rest assured if you pick up a third-gen model you're literally getting better bang for your buck versus its predecessors.

Source: EE|Times