Monday, March 14, 2011

iSuppli calculates 32GB iPad 2 3G's BOM cost: about $325


We've already seen an iFixit iPad 2 teardown showing us the components of the iPad 2, and now we have iSuppli's turn at the same thing. In iSuppli's case, when they do a teardown, they are interested in more than just the parts; they are interested in the cost of a particular device.

The reason for that is that the cost of the device will obvious drive the gross profit margin on every unit. iSuppli gave All Things Digital an early look at the results, and the results for a 32GB model show a Bill of Materials (BOM) cost of $326.60 for the AT&T version and $323.35 for the Verizon version.

Aside from the wireless chips, which have to differ since the Verizon version is CDMA and the AT&T version GSM, the components are identical across both versions.

That can be compared to the Motorola Xoom, considered the first real iPad rival, which iSuppli priced out at $359.92 earlier. However, them Xoom (unsubsidized) is about $70 higher than the similarly equipped iPad 2. The Xoom does have some components that are higher spec than the iPad 2, such as better cameras, and more RAM (1GB vs. 512MB). Thus, it seems like the Xoom is priced properly vs. the iPad, but public perception does not seem to be in agreement.

Sales of the Xoom, the first Android 3.0 (Honeycomb) tablet have reportedly beenslow.

Just as on the Xoom ($140) the touch-sensitive display is the most expensive single part of the iPad 2. iSuppli said its version carried an LG display worth $127, but Apple is known to source its displays from more than one OEM.

Via: MobileBurnAll Things Digital

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