Enterprise Mobility: Apple iPad 2 Materials Cost $326.60 for 32GB ATandT 3G Tablet

By Michelle Maisto  |  Posted 2011-03-15 Print this article Print
iPad 2 Touch-Screen

iPad 2 Touch-Screen

Refinements to the iPad 2's touch-screen, reports IHS iSuppli, have driven up its price to $127, from the original iPad's $95.
With the iPad 2, Apple has managed to keep its costs "virtually the same" as with the original iPad, IHS iSuppli reported following a teardown of the 32GB version of the tablet with 3G connectivity. The AT&T model, IHS iSuppli found, carries a BOM (bill of materials) totaling $326.60 before manufacturing costs, while the Verizon Wireless model totals $323.25. By comparison, the 32GB version of the original was $320. The priciest item on the iPad 2's bill, by far, is its touch-screen and display, which the analyst firm says is partly due to the "manufacturing challenges" it presents. Other notable components of the iPad 2—which was launched March 11—include its GSM/HSPA (High-Speed Packet Access) Intel chipset, which is identical to the iPhone 4's; its speedy—and pricey—A5 processor, which costs 75 percent more than the proprietary A4 in the first iPad; and the battery, again is improved but also is pricier, which along with Apple's special battery-management circuitry, says IHS iSuppli, provides an "exceptional result."
Michelle Maisto has been covering the enterprise mobility space for a decade, beginning with Knowledge Management, Field Force Automation and eCRM, and most recently as the editor-in-chief of Mobile Enterprise magazine. She earned an MFA in nonfiction writing from Columbia University, and in her spare time obsesses about food. Her first book, The Gastronomy of Marriage, if forthcoming from Random House in September 2009.

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