Apple’s new iPad
Ever thought about what the true cost of making the iPad was and how much profit Apple is making from selling them? Apple is selling their newest iPad Air for US$729, but how much does it really cost to built an iPad Air. The most expensive part of the iPad is the retina display touchscreen, which would cost around $106, then the processor at $36.40, the connectivity components at $33.07, the battery at $17.50, both the cameras at $15.50, other electronics at $63.40, the non-electronic parts at $22.95, then the assembly to be $12, which makes the total component cost to be $306.82. This gives Apple the potential profit of $422.
Regardless of the price, Apple will still sell many of their new iPad’s due the brand image and name, however recently due to the company’s problems with their iPhone 6 and iPhone 6 Plus, the demand for their product may decrease.
Recently, there has been some controversy over the new iPhone 6 and 6 Plus where customers have been saying that they are able to bend their new phones. Customers have been outraged and Apple has still yet to comment on the matter. However, from a customers point of view, this would most likely make consumers avoid Apple and their new ultra thin products as they are known to bend, and not be of high quality as they stand for. This controversy could ultimately ruin Apple’s reputation as a whole and decrease their market share.