14 DAY TRIAL // An analysis by UBM Techinsights reveals that Apple spends roughly $310 on each new LTE iPad made, decreasing its profit margins compared to previous models of the tablet computer.
UBM breaks down their analysts as follows:
- 2048x1356 Retina display - $70 (the iPad 2’s 1024x768 screen cost the company $49.50) - A5X chip - $28 (the A5 found in the previous iPad is known to cost about $22) - LTE chipset - $21 (versus the 3G radio found in previous tablets that only costs about $10).
Including other parts that make up the tablet, the marketing intelligence firm believes a base iPad 3 costs Apple a total $310 in raw components.
This would represent a 51 percent margin over the $629 price before other factors came into play. An equivalent 3G iPad 2 reportedly yielded a 56 percent profit margin for Apple when it shipped in early 2011.
A physical teardown of the tablet device is believed to churn up similar results.