Apple Pays Just $1 More to Manufacture the New iPad Air 2 than the Previous Generation

[dgstorm]

According to the latest supply chain leaked intel, Apple doesn't have to eat much more in the way of costs associated with their newest iPad Air 2 compared to the older iPad Air. The latest report indicates that Apple only pays $1 USD more to have an iPad Air 2 built than it cost them to have the previous gen iPad Air crafted.

Despite that, it looks like Apple's profit margin on iPads has dropped a bit more than that single dollar would suggest. Here's a quote with more detailed info,

According to the analysts, the 16GB Wi-Fi only base model of the iPad Air 2 costs $275 per unit to manufacture, which is a whopping one dollar more than what the former iPad Air's base model manufacturing costs. This effectively means that, research and development costs aside, Apple spent a single dollar improving the technology inside the tablet.

The base model's market price is $499, while the top of the line iPad Air 2 with 128GB of storage space and LTE connectivity costs $358 to make, and sells for $829. IHS claims that Apple's implied profit margin on the iPad Air 2 has dropped to a range between 45 to 57 percent as opposed to the original's 45 to 61 percent profit, depending on the device sold.

While Apple's profit margins may have shrunk a few percentage points, Apple is still dramatically higher than any and all profit margins any of their Android competition can muster.

Source: PhoneArena

 

[s2mikey]

Those are incredibl margins for electronic devices. Unheard of.

Kind of makes ya feel like they could either lower the price a bit OR better yet, make them here in the USA since we could really use the jobs.

Oh well.