Added Cost of New iPad Absorbed by Apple

New iPad

(Image Credit: apple.com)

The cost of the 32GB 4G version of the new iPad is reportedly higher compared to a similar model of the iPad 2. However it appears that this extra expense was not passed on by Apple to its customers. Instead the company is absorbing the nine percent extra cost for this particular model of the new iPad.

The higher cost for this model of the new iPad was caused by the increase in the cost of producing the next version of the Apple tablet. Despite the increased cost, Apple has not increased the price tag of the device.

A recent tear-down analysis made by HIS iSuppli showed that the cost for the components of the new iPad for the 32GB 4G model was nine percent higher compared to the iPad 2 that features 3G connectivity.

The cost of producing this model of the new iPad is $375 with $11 going to the assembly while $364 for the components. This is more than fifty percent of the price tag of the device in the market which is at $729.

The increase in the cost of the components of the device can be attributed to the retina display of the new iPad along with the bigger battery and the 4G LTE connectivity feature. The cost of the retina display, which is produced by Samsung, is around $87 or $57 higher compared to the display used on the iPad 2.

The applications processor of the new iPad is also produced by Samsung and may be the source of the battery cells for the device. This would indicate that half of the cost for the components of the device is due to the components produced by Samsung.