14 DAY TRIAL // Speaking of how much Apple spends to make its sleek tablet computers, a research paper by IHS iSuppli projects the company’s future display spending at double the amount recorded so far.
The main cause, if you will, is “soaring sales" of the new-generation iPad, said IHS prior to Apple's March 7 event.
But these estimates should still hold water. In fact, if those sell-outs are any indication, Apple might actually blow away iSuppli’s estimates. But here’s what they believe will happen:
“Apple Inc. in 2012 is projected to nearly double its spending on displays used in media tablets and smartphones […] Apple in 2012 is projected to spend an estimated $9.0 billion on display panels used in iPads and iPhones, up 91 percent from $47 billion in 2011 […] Driving this increase will be a 69 percent surge in Apple’s collective media tablet and smartphone shipments this year, along with the use of more expensive display technology, IHS predicts.”
The analytics firm is, of course, referring to the new Retina display found inside Apple’s third-generation iPad.
Vinita Jakhanwal, senior manager for small & medium displays at IHS, says that “the arrival of the new-model iPad […] combined with continuing strong sales growth of the iPhone […] will put Apple’s display-purchasing growth into overdrive in 2012.”
“Along with the high volumes of expected sales, the use of more advanced technology will boost revenue for the iPad screens, increasing Apple’s display expenditures dramatically,” said Jakhanwal.
(Keep in mind that Mrs. Jakhanwal made these projections before Apple had confirmed a Retina display on its new iPad)
“Apple is likely to incur a significant price premium for using the higher-resolution display in the new iPad,” she said. “However, manufacturers are expected to grant discounts, especially because Apple, in all likelihood, has made investments in display makers like LG, Sharp and Toshiba Mobile Display. By investing in its partners, Apple not only can mitigate these costs to a degree, but it also can be assured of the availability and quality of the displays.”
It has been estimated that Apple spends roughly $70 for each Retina display used in the third-generation iPad.
Only a proper (physical) teardown will determine the exact BOM (bill of materials) for the new tablet device.
However, so far, it is believed that each new 4G iPad 3 costs $310 to make (give or take a few bucks for other incurred factors during manufacturing, such as the actual assembly).