Apple iPad – Mid Range 32GB 3G-Wireless Model to be Most Profitable

iSuppli have provided estimates of how much profit each model of the iPad will rake in for Apple [AAPL].

The report shows that the screen is the most expensive component on the device, which is no surprise really, and accounts for about 29% of the cost dropping slightly as prices rise on the upper end models. The screen it’s self is estimated to cost $80 on each device with the battery, wireless, CPU, casing and other of the same features between the devices holding the same costs. What raises the price between models is the amount of storage each has (either 16GB, 32GB or 64GB) and whether or not it has 3G and GPS built in.

The 32GB 3G-Wireless model is estimated to be where the most profit will be made by apple and has a combined BOM (Bill of Materials) estimated at $287.15 and will retail for $729 making it several hundreds of dollars per unit sold. One thing to note is that the pricing estimates do not cover software and any licensing costs which might be required on each device.

One thing to note here is that all pricing supplied is based on a “virtual teardown” of the iPad and costs estimated on estimated volumes and discounts etc…

It’s certainly an interesting read as many wondered if the $499 price point for the cheapest model was going to be running at a very tight margin for Apple. If the estimates are accurate then it seems they will be doing just fine.

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