Apple lowers profit margin with new iPad release

New iPad costs more to manufacturer than previous models yet retail price remains

In a bid to maintain its competitive iPad pricing, Apple has lowered its profit margin on the new iPad as component prices rise with the Retina display

Apple has lowered its profits margins with the third-generation Apple tablet as a teardown of the device reveals that despite maintaining the same retail price point the new iPad cost more to manufacturer.

Thanks in part to the costly introduction of the tablet’s eye catching Retina display party piece, the new iPad costs Apple roughly $40 more to produce than its predecessor the market dominating iPad 2.

Whilst the total combined price of components and manufacturing fees of the iPad 2 saw Apple able to ship the 32GB Wi-Fi + 3G model for around $335 (£211.50), new reports have suggested the new iPad will cost Apple $375 (£236.75) to get to stores.

With this figure broken down to $364.35 worth of components and $10.75 manufacturing fees, Samsung has been highlighted as the new iPad’s largest external component supplier with the Samsung Galaxy S2 manufacturer providing the $89 Retina display and the $23 A5X processor.

Apple new iPad 3 Specs

Officially unveiled on March 7th, the new iPad touched down in the UK, US and a host of other countries last Friday, March 16th, with a bevy of new features and high-end specs.

As well as the new eye catching Retina display party piece, the new iPad boasts an improved iSight 5-megapixel camera on the rear and an ARM A5X dual-core processor with quad-core graphics. Due to this selection of new innards, which includes a dramatically larger battery, the new iPad lines up marginally thicker than its predecessor, the market dominating iPad 2.

Have you already snapped up a third-generation Apple iPad? What benefits do you see from having a Retina display? Let us know via the T3 Twitter and Facebook feeds.

Via: AppleInsider