Thursday, February 11, 2010

AAPL iPad profit margins

http://www.theregister.co.uk/2010/02/11/ipad_breakdown/

This from The Register; a breakdown of the profit-after-materials-cost for the iPad by a market research firm. Of course, this doesn't include R&D, advertising, and so forth.

"The research firm said the total cost of materials and manufacture for Apple's big iPhone ranged from $229.35 for the 3G-less, 16GB version, which sells for $499 to $346.5 for the top of the range 3G 64GB version, which carries a $829 price tag.

While the top end product produces a profit of $482.85, it is the 32GB 3G version which iSuppli says will produce the biggest chunk of profit. That's because while it sells at $729, its manufacturing cost is a mere $287.15, less than 50 bucks more than the bottom end iPad, producing a bumper profit of $441.85."