The True Costs of Making a Nexus7 or The New iPad - Digital Space

Wednesday, 11 July 2012

The True Costs of Making a Nexus7 or The New iPad

Ever wondered what it really cost to make your favourite tablet computer? Well, you will find it interesting to know that while some companies maximizes your hooked-ness on their product and puts the top dollar on their device, others try to be humane enough in their quest for world domination.


So what does it cost to make a Nexus7 or the new iPad? first you need to know that there are different components that are assembled to build one device: there's the obvious display (where you must have the best or you are toast), then the innards like memory chips, the main processing unit (which must be fast enough to power all that computation, right).

According to IHS iSupply (don't know if there's any relation to iDevices :) "of the iPad's innards by IHS iSuppli, the 32-gigabyte version of the new iPad with 4G LTE wireless costs $375 to make." You can compare that with $729 price tag of the said device. This means that Apple makes like 50% profit on each 32Gig new iPad sold. Meanwhile, Google makes about $40 on the 8Gb Nexus7 and more on the 16Gb version. Read the full breakdown here.

No doubt who's makes more profit on their wares. But it certainly begs the question: Is it worth it for the price that we have to shell out to acquire these toys? If you can answer in the affirmative, then by all means put your money where your mouth is!