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More iPad Cost Estimates Show Room for Price Cut

by - source: Tom's Hardware US

The mid-range iPad 3G to be the biggest money maker.

iSuppli, the firm that loves to do teardowns of new gadgets to find out just how much they cost to put together, last week revealed its estimates for the Apple iPad.

The firm found that the lowest-end iPad will cost Apple $219.35 in total materials and $10 in manufacturing costs, equalling a $229.35 total for the 16GB Wi-Fi-only model. While Apple is expected to be getting more than double that back from the $499 price tag, the most profitable

The mid-priced 32 GB iPad with 3G wireless capability will contain $275.95 worth of components and other materials and cost $11.20 to manufacture, iSuppli estimates. This will retail for $729 in stores.

Keep in mind that these are present-day estimates without exposure to actual hardware, but it certainly shows that there's a comfortable buffer (even after R&D and other overhead costs) for Apple to drop price.

In fact, the Wall Street Journal noted that Apple expressed intentions that it plans to remain "nimble" on iPad pricing (read: price drops if the competition heats up or there is lesser-than-expected demand).

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xbeater 18/02/2010 06:58
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I might buy it if it was below 20% profitable, not over 100%.... otherwise,

iFlop

fantomv50 18/02/2010 07:31
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If it could do flash, would be great. or at least had a decent res screen and not something from about 10 years ago.
1024*768 lol,

Even my 11.6 notebook HP DM 1 1010sa does 1366*768 but still has problems with flash on its 2gb ddr 3 1066 ram ( 800mhz running due to the cpu fsb ) and its 1.2GHZ dual core Celeron CPU. And 250gb hd and was only £349.99 with wifi and bluetooth open to all device's like gps etc

princeofdreams 18/02/2010 10:02
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Want something overpriced, restricted and full of hype? There's an Apple for that...

donovant 18/02/2010 13:41
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I agree with Rab1d-BDGR paying £500 for an ipad is daft if you cant choose who and where to get your software, it also needs to be albe to multi-task or whats the point in it, may as well go and get a tablet with windows 7 on it instead.

mi1ez 18/02/2010 14:20
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Where's the brammar gone in this article? on holiday?

Tunafish 21/02/2010 16:29
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Hello, one sided people. Apple has 'a platform locked into buying proprietary software' because they approve and disapprove the apps in question so people won't download spyware or malware.

Only if the ipad came with multitasking and a tablet-specific OS. And a webcam.(screw flash!)....sigh...
Oh, well. There's always a iPad 2nd generation.

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