New 4G LTE iPad Parts Cost $310, Leaving 51% Sales Margin for Apple

An analysis by UBM TechInsights shows that a 16 GB model of Apple’s newest 4G LTE iPad costs about $310 for the parts with the new Retina display being the most expensive component at $70. In turn, Apple’s profit margins have decreased from the previous model by six percent to now stand at 51 percent. This means that Apple isn’t taking in as much money as they were with the device’s predecessor, though prices of components do seem to reduce over time. Check after the break for more information and a chart of the component pricing in Apple’s latest iPad compared to its forerunners.

As you can see, Apple has added a slightly larger battery that now costs $30 instead of $22. In addition, the new Bluetooth 4.0 chip has brought the WiFi, Bluetooth, and GPS category’s total to $7 from $5.50. This new revision of the Bluetooth technology is said to be much better on the battery, meaning that you’ll be able to use a Bluetooth keyboard more often without it draining the life from your iPad. Other price increases include the SDRAM to $8.50 from $5, which is because there is now 1 GB of RAM in the new device. Lastly, the new quad-core graphics processor increased the entire processor price to $28.

Previous generation iPads have been slightly cheaper, with the 3G iPad 2 at $276.27 and the original 3G iPad at $270.86. One obvious reason for this major increase in cost on the new model is the Retina display, but there is actually one other element that has been heavily improved. According to the analysis, Apple increased the battery size in their new iPad to 11,180 mAh, up from 6,580 mAh in the previous generation. This was done to insure that the battery would still last for nine hours when communicating over 4G LTE.

You may remember that there have been a lot of problems with 4G LTE battery life on Verizon devices, such as the HTC ThunderBolt. This device had only lasted an average of two hours on 4G, but on 3G it survived a full nine or ten hours of use. Apple has solved this problem by using a battery that’s nearly twice the size of its predecessor.

[UBM TechInsights via AppleInsider]

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