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

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

  1. darngooddesign macrumors G3

    Joined:
    Jul 4, 2007
    Location:
    Atlanta, GA
    #2
    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

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    Feb 23, 2011
    #3
    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

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

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    Mar 3, 2011
    #5
    After knowing the generous profit Apples makes on each of these units, it makes the notorious backlight bleed even more inexcusable.
     
  5. bchreng macrumors 6502a

    bchreng

    Joined:
    Jul 26, 2005
    #6
    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

    JRoDDz

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

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

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

    Chupa Chupa

    Joined:
    Jul 16, 2002
    #10

    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

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

    Joined:
    Mar 15, 2011
    #12
    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

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

    Joined:
    Mar 7, 2011
    #14
    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

    SPEEDwithJJ

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    Nov 2, 2008
    #15
    Excuse my stupidity, but I also wonder how much the restaurants invest in R&D on making spaghetti? :confused:
     
  15. bchreng macrumors 6502a

    bchreng

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    Jul 26, 2005
    #16
    The money probably goes towards paying the employees as well as paying for the upkeep of the restaurant and equipment.
     
  16. Piggie macrumors 604

    Piggie

    Joined:
    Feb 23, 2010
    #17
    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

    Joined:
    Jun 21, 2010
    #18
    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

    GFLPraxis

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

    Joined:
    Mar 3, 2011
    #20
    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 68000

    PBG4 Dude

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

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

    SPEEDwithJJ

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    Nov 2, 2008
    #23
    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

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

    Joined:
    Jan 5, 2002
    #25
    Probably has more to do with the iPhone camera thickness.
     

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