Apple (AAPL) Still Keeps Robust Margins with Latest iPad Model
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Apple (Nasdaq: AAPL) might have another profit bonanza on its hands with the latest iPad Air.
According to the WSJ, IHS iSuppli data from a tear down of the latest-and-greatest tablet from Cupertino shows that the iPad Air costs the company anywhere from $274 to $361 to build. The retail price for the iPad Air runs from $499 to $929.
Most of the cost of Apple's iPad Air is in the display; the screen runs around $90 per unit while touch screen parts cost roughly $43. The display has a cycle-olefin polymer (COP) sensor included on the outside of the Gorilla Glass panel. This enables the device to have just one panel, versus two before. The whole assembly measures to 1.8-millimeters (mm), from 2.23-mm before.
There are also fewer than half the number of LEDs for backlighting as required on the previous iPad model. IHS said that the iPad Air has about 36 LEDs, from a prior count of 84 LEDs.
IHS estimates that Apple's gross margins on the iPad Air run from 45 percent for the 16-GB WiFi only version, up to 61 percent for the 128-GB LTE-equipped model.
Shares of Apple are modestly lower Tuesday.
According to the WSJ, IHS iSuppli data from a tear down of the latest-and-greatest tablet from Cupertino shows that the iPad Air costs the company anywhere from $274 to $361 to build. The retail price for the iPad Air runs from $499 to $929.
Most of the cost of Apple's iPad Air is in the display; the screen runs around $90 per unit while touch screen parts cost roughly $43. The display has a cycle-olefin polymer (COP) sensor included on the outside of the Gorilla Glass panel. This enables the device to have just one panel, versus two before. The whole assembly measures to 1.8-millimeters (mm), from 2.23-mm before.
There are also fewer than half the number of LEDs for backlighting as required on the previous iPad model. IHS said that the iPad Air has about 36 LEDs, from a prior count of 84 LEDs.
IHS estimates that Apple's gross margins on the iPad Air run from 45 percent for the 16-GB WiFi only version, up to 61 percent for the 128-GB LTE-equipped model.
Shares of Apple are modestly lower Tuesday.
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