32GB iPad 2 w/ 3G costs $336.60 to manufacture

Discussion in 'iPad' started by Justin Luck, Mar 14, 2011.

  1. darngooddesign macrumors G3

    Jul 4, 2007
    Atlanta, GA
    This just in. The retail price of an item is higher than the cost to manufacture. Go ahead and file that under "duh".
  2. Davichi macrumors 6502

    Feb 23, 2011
    Display is 127.... dollars and people want retina display... It will be like 300 dollars for that display alone.
  3. Justin Luck thread starter macrumors regular

    Mar 3, 2011
    I would be interested to know what the base model costs.
  4. Justin Luck thread starter macrumors regular

    Mar 3, 2011
    After knowing the generous profit Apples makes on each of these units, it makes the notorious backlight bleed even more inexcusable.
  5. bchreng macrumors 65816


    Jul 26, 2005
    You're forgetting about the time, money and effort that went into R&D. It's like saying a fancy painting is only worth the price of the canvas and ink. You're totally forgetting about the labor and thought that went into the work.
  6. JRoDDz macrumors 68000


    Jul 2, 2009
    Don't forget apple gets a volume discount.. They buy parts by the millions.
  7. Imsuperjp macrumors 6502

    Apr 9, 2010
    How much does it cost to make spaghetti and how much do they charge at restaurants?
  8. DarwinOSX macrumors 65816

    Nov 3, 2009
    These estimates are idiotic and so is anyone who buys into them.
  9. Chupa Chupa macrumors G5

    Chupa Chupa

    Jul 16, 2002

    Yup. Plus other non-labor, non-manufacturing costs like warranty/replacement costs, regulatory approval, marketing (hey, they might sell themselves but that iPad web page and the videos on them still cost Apple money). Amazing how people who seemingly know zero about business feel so competent to be critical of it based on one raw numbers aspect.
  10. hlr element macrumors member

    Jan 10, 2009
    there's so many other costs.... RnD, shipping, stores, employees.
  11. shawndoc macrumors newbie

    Mar 15, 2011
    That's typical markup at retail. Keep in mind all of the following need to make some profit from each one to cover their costs and hopefully make some money:

    1. Factory (Foxconn)
    2. Apple
    3. The distributor (Ingram Micro?)
    4. The retailer

    Its not like Apple is getting the entire difference between component cost and MSRP for themselves. They have to share it with others. Even when selling through their own stores, they still have to pay for the location and the salaries of all those helpful employees, not to mention all the R&D that went into designing the iPad and iOS.
  12. MBPLurker macrumors member

    Feb 17, 2010
    Licensing is also a huge hidden cost. Not everything in the iPad is patented by Apple.
  13. DS3 macrumors 6502a

    Mar 7, 2011
    I'd like to see a person who takes these numbers seriously take 337 dollars and build me an iPad 2.

    It's an interesting thing to know, but as others said you have to look at the whole picture. The iPad is definitely not a price gouging product. Apple probably has had some comps where that's debatable though....
  14. SPEEDwithJJ macrumors 65816


    Nov 2, 2008
    Excuse my stupidity, but I also wonder how much the restaurants invest in R&D on making spaghetti? :confused:
  15. bchreng macrumors 65816


    Jul 26, 2005
    The money probably goes towards paying the employees as well as paying for the upkeep of the restaurant and equipment.
  16. Piggie macrumors G3


    Feb 23, 2010
    I like this bit:

    Camera $4.30

    Good job they didn't fit the iPhone4's 5 Megapixel unit that costs. $9.75

    OMG, that would have pumped the component cost of the iPad up by $5.45 to give us a decent camera.

    Don't know about you, but I'd happily paid twice that $11 to have the better camera fitted.
  17. nixiemaiden macrumors 6502a

    Jun 21, 2010
    There could very well be R&D involved in spaghetti. There are different recipes they can use to make the pasta...different recipes used to make sauces...testing these recipes and the consumer response to them etc.
  18. GFLPraxis macrumors 604


    Mar 17, 2004
    News flash: Photoshop CS5 costs $0.50 to manufacture.
  19. Justin Luck thread starter macrumors regular

    Mar 3, 2011
    You don't think I am well aware of this??

    Also, this cost isn't for the base model. It is for the $730 version.
  20. PBG4 Dude macrumors 68020

    PBG4 Dude

    Jul 6, 2007
    It also costs money to file and defend patents. How many patent lawsuits is Apple involved in at the moment?
  21. outz macrumors 6502

    Jul 17, 2007
    it's typical apple. gotta leave out obvious stuff so everyone will purchase the next revision.
  22. SPEEDwithJJ macrumors 65816


    Nov 2, 2008
    I'll also add in by saying that not only does the selling price have to cater to all their costs, Apple also has to make about a 30% profit on each iPad sold.... No? :confused:
  23. Justin Luck thread starter macrumors regular

    Mar 3, 2011
    You gotta wonder how much it is going to cost Apple to replace all these defective backlight bleeding units.
  24. Nebrie macrumors 6502a

    Jan 5, 2002
    Probably has more to do with the iPhone camera thickness.

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