iPad Air Costs $42 Less Than iPad 3 To Make

Last month, Apple unveiled iPad Air that comes with significantly improved looks and packs an ultra-slim body. The device has already created a buzz. However, lately it has been reported that the cost for making iPad Air is $42 less than the third-gen iPad, iPad 3.

iPad Air

Apple iPad Air is super slim, has only 7.5 mm thickness. It comes with impressive hardware and offers 24 hours of battery life when used as LTE personal hotspot. However, the 16GB iPad Air (Wi-Fi) is being sold for $499, while the cellular versions start at $629. But the question is how much money has Apple spent to make a single iPad Air? Well, based on a visual teardown of iPad Air, IHS Suppli has estimated that Apple has spent in between $274 to $361 (depending on which mode you go for) to make a single iPad Air tablet.

Teardown of iPad Air

IHS Suppli has said that it costs Apple around $274 to make the base version of the iPad Air. On the other side, Apple spent $232 to manufacture each third-generation entry-level iPad. IHS Suppli has estimated the iPad Air’s display cost $90, compared to $87 for the pervious model. The touchscreen model is also more expensive, at $43, compared to $37.50 for the previous model. Be noted, the costs mentioned here is the costs of the components of the devices and does not factor in additional costs associated with the tablet, such as R&D, marketing, manufacturing, software, patent licenses, and more.

What do you guys think? How is it that Apple has managed to get the newer iPad Air to cost less than its predecessor? Share your thoughts with us in the comments box below.

Source: AllThingsD
Thanks To: iDownload Blog

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