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Apple devices building costs

Thursday, November 7, 2013

Analyst firm IHS iSuppli usually make an estimate of the cost of building a brand-new Apple device by tearing them down and looking at what goes into one, they have made a cost estimate for iPad Air for about $274 and $361, for the $499 16GB Wi-Fi only model at the low end, and the $929 128GB Wi-Fi + LTE version at the top, and Margins become higher the further up the chain you go.

But the noticeable in iPad Air is that it costs $40 or so less than the third-generation iPad did when it first launched, although it have a much more expensive display and touchscreen assembly, but the saving in cost came from the fact that the display requires fewer LED units (36 vs. 84 before) to power the screen, and that A7 is actually cheaper than the A5 was back in March when the iPad 3 launched, and the cellular array used in the iPad covers all LTE frequencies in the U.S., which means cheaper manufacturing costs overall since it only needs to make one version.

Also for iPhone 5s and iPhone 5c the numbers would be, around $199 per device for iPhone 5s with 16GB, and $208 for 64 GB vision of the device, while iPhone 5c cost was estimated around $173 for 16 GB model and $183 for the 32GB version.

Apple never reveal its device or supply costs, so this number will remain only predictions, but the one thing is certain is that Apple has the talent to lower supply prices and drive margins up year over year, and this would be one of the strength point of this hardware giant.

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