Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Apple
    • Apple
    • Mobile

    Apple iPad Air Offers Slimmer Design, Fatter Margins

    By
    Michelle Maisto
    -
    November 7, 2013
    Share
    Facebook
    Twitter
    Linkedin

      Apple introduced the iPad Air Oct. 22, calling it a “tremendous advancement” and an “entirely new mobile computing experience” and celebrating its 1-pound weight, all-day battery and desktop-class A7 processor. What it left out of its statement, however, were boasts of having created the most advanced iPad yet, for less than the cost of its previous model.

      The 16GB Apple iPad Air with cellular and WiFi connectivity has a bill of materials (BOM) of $304, according to a teardown by IHS iSuppli. The figure represents a 6 percent savings over the $325 BOM the firm found the equivalent third-generation iPad to have.

      (The BOM doesn’t include manufacturing costs—$6—and other expenses to Apple, such as software, licenses, royalties and research and development.)

      For the lowest-end iPad Air (16GB of NAND, sans cellular), the BOM plus manufacturing is $274—$42 less than the equivalent third-gen iPad.

      “While the iPad Air slims down in size, the profit margins are getting fatter,” Andrew Rassweiler, IHS senior director of cost benchmarking services said in a Nov. 5 statement.

      A good degree of the new iPad’s slimming down comes, thanks to its 1.8mm-thick display (versus the 2.23mm display on the earlier model), but as with all good things, it comes at price. IHS estimates that the new displays come at a cost of $90, and that its touch-screen module is $43 (versus $87 and $37.50, respectively, of the earlier iPad).

      “Although the Air’s new, ultrathin display and touch-screen are more expensive than for the third-generation iPad, Apple has held the line on cost by taking advantage of price erosion in other areas,” said Rassweiler. Apple has also, he said, used the same components and suppliers as for the iPhone 5S and 5C “as much as possible.”

      For example, the iPad Air uses the Apple-designed, Samsung-made A7 processor that’s in the iPhone 5S, though “with some variations,” according to IHS.

      The A7 in the Air, made to work harder than its iPhone counterpart, given the difference in display sizes, has a metal top that acts as a heat sink. Additionally, the power management chips from Dialog Semiconductor that support both processors are different. (IHS says it plans to further examine the two.)

      Other frugal moves were the use of the same memory to support the A7 in the iPad Air as is used in the 5S, and the same suite of Qualcomm-supplied chips.

      As for additional differences between the iPad models, IHS found the iPad Air to have a battery capacity down 23 percent over that of the third-gen iPad—a feat likely made possible by the lower power consumption in the Air’s display backlight.

      Apple also amped up the microphone technology in the iPad Air. The technology is digital this time, instead of analog, and there’s more of it.

      “In another major departure, Apple is employing two microphones in the Air, as opposed to one in the previous models,” wrote IHS in its report. “The second microphone likely performs noise cancellation.”

      IHS adds that Apple’s price points also shift dramatically between models. While the 32GB iPad Air has a BOM just $8.40 more than the 16GB model, it retails for a full $100 more.

      Michelle Maisto
      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.

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×