What If…Apple Only Offered the 64GB/3G iPad and Sold It For $499
Even though the iPad is still more than a month away from shipping, iSuppli conducted a preliminary itemized parts breakdown. The results aren’t that surprising: Apple’s making a boatload on these things. Suppli concluded that the $499 16GB/no 3G model only costs $229 to manufacturer with the $829 64GB/3G model costing only $117 more to make even though it carries a $329 premium. Nice, eh?
These numbers can be broken down even further showing Apple’s insane margins. The 3G module only costs $24.50, but Apple charges $129 more for the option. The NAND memory chips are really the only difference between all three options, but their real costs of $29 for 16GB, $59 for $32GB, and $119 for 64GB are nowhere near proportionate with the iPad’s prices. All this data shows that Apple’s abandoning its long-held K.I.S.S. strategy.
So what if Apple got back on the keeping it simple bandwagon, only offered the high-end 64GB with 3G iPad and still sold it for $499? After all, the company would still be making at least $153 on each iPad sold. Would that turn around the iPad’s outlook?
Read the rest of this story at CrunchGear…
