New iPad estimated to cost $310 to build

Apple estimated to spend $310 on BOM (bill of materials) for the new iPad.

51 seconds read time

If the current estimated BOM (bill of materials) from UBM TechInsights is anything to go by, we're looking at Apple cutting their profit margins ever-so-slightly for the new iPad when compared to the previous two models.

New iPad estimated to cost $310 to build |

UBM TechInsights estimate shows a BOM of $310 for the new iPad - the 4G LTE 16GB model. The retail pricing on this model is $629, which gives Apple a very nice margin of 51-percent. Compared to previous models, this is down 6-percent or so.

The firm does note that a proper teardown is required to get their numbers more refined, but preliminary estimates typically match more accurate teardowns to within just a few dollars. More precise number should be available by the end of the week when the new iPad ships.

The first iPad had a margin of 57-percent, the second with a margin of 56-percent, so if the third launches with its estimated 51-percent margin, it is still great. Considering it has a more expensive display, estimated at $70 per device, compared to the iPad 2's $49.50 display, this represents a great profit margin for Apple.

Another expensive component is the new battery, the iPad 2 had a 6580mAh battery, where the new iPad rocks an 11,180mAh battery. This ends up costing $22 and $30 for the iPad 2 and new iPad, respectively.


Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering and has recently taken a keen interest in artificial intelligence (AI) hardware.

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