IHS iSuppli completes iPad Air 2 teardown, estimates slightly higher manufacturing and component costs
Date: Wednesday, October 29th, 2014, 15:21
Category: Finance, Hardware, iPad
As is customary, the new iPad Air has been torn down to get an approximate fix on his much its component pieces retailed for.
The answer for the iPad Air 2 is about US$275.
Per MacRumors and Re/code, research firm IHS iSuppli has torn down the new iPad Air 2 in an attempt to estimate Apple’s component costs for the device. According to IHS iSuppli’s estimates, the 16 GB iPad Air 2 costs Apple roughly US$275 to build, just one dollar more than last year’s iPad Air.
The report unsurprisingly points out that Apple benefits from stronger profit margins as users move to higher capacity models, with Apple paying only about US$50 more for 128 GB of storage compared to the base 16 GB configuration while charging users US$200 for the upgrade. Still, Apple’s move to eliminate the 32 GB option and slide the 64 GB and 128 GB models down US$100 has slightly eroded Apple’s profit margins at the top end.
The latest report from the research firm IHS, shows that the base model of the iPad Air 2, the 16-GB Wi-Fi version, which sells for a price of US$499, costs $275 to build, exactly one dollar higher than the previous base model. The top-end model, the 128-GB LTE version costs which sells for US$829, costs US$358 to manufacture.