iPad Air 2 models cost Apple $275 to $358, teardowns reveal
A 16GB, Wi-Fi-only model costs $275 to make, compared with its $499 retail price, according to IHS. The 128GB Wi-Fi + Cellular option costs $358, versus its $929 price tag.
Once again, Apple has found a way to produce a new iPad that can generate boatloads of profit.
IHS, a market researcher that tears down the latest devices to see what components they include and how much a device might cost the company produce, has revealed that the iPad Air 2 costs between $275 and $358 to build, depending on the version. At the low end is the 16GB with Wi-Fi-only version, while the most expensive version offers 128GB with Wi-Fi + Cellular.
To put that into perspective, Apple charges $499 for the entry-level iPad Air 2. The 128GB Wi-Fi + Cellular option costs consumers $929.
That Apple is boasting healthy margins is perhaps no surprise. As IHS pointed out, the company's total cost on the iPad Air was about $269 to start. So, while Apple is making slightly less per unit this year, its product is still providing healthy margins.
Apple launched the iPad Air 2 last week. The company's latest flagship tablet is thinner than the first-generation iPad Air and comes with the same 9.7-inch screen. Apple offers customers 16GB, 64GB and 128GB versions.
According to IHS, Apple pays between $5 and $6 per unit to have its iPad Air 2 produced. Apple's 9.7-inch display is the most expensive component, costing the company $77 per unit. The touchscreen layered on top of that sets Apple back $38 per unit. Apple's rear- and front-facing cameras combine to cost $11, while the company's wireless, GPS and Bluetooth chips cost $4.50 each.
Apple did not immediately respond to a request for comment.