It's widely known that Apple purchased PA Semi Conductor for $278 Million dollars. But what's not known is how much Apple had to sink into the company for R&D and licensing to get the A4 (and any derivatives) designed and out the door.

Mac Rumors talked to some experts in the field and did an article and suggests that the ballpark for that type of chip design from the ground up usually runs about $1 Billion dollars. That figure of course assumes you will get another fab to actually produce the chips... having to build your own fab and do your own production would at least triple that figure.

You can read the full article here: Apple's iPad Chip Development Cost Estimated in $1 Billion Range - Mac Rumors

Wow! I heard they cost like $6 each to manufacture though.

Originally Posted by iPadBoy

Wow! I heard they cost like $6 each to manufacture though.

The manufacture cost is really nothing compare to the investment in development ... i have a child security device .. the development cost me 400.000 US$ and i sell the device to my distributor 19US$ .... (of course i win money on this price)

Yeah true, the R&D costs is what do it. Though, for Apple, it's no problem shelling out the odd billion here and there

Originally Posted by JohnnyApple

It's widely known that Apple purchased PA Semi Conductor for $278 Million dollars. But what's not known is how much Apple had to sink into the company for R&D and licensing to get the A4 (and any derivatives) designed and out the door.

Mac Rumors talked to some experts in the field and did an article and suggests that the ballpark for that type of chip design from the ground up usually runs about $1 Billion dollars. That figure of course assumes you will get another fab to actually produce the chips... having to build your own fab and do your own production would at least triple that figure.

You can read the full article here: Apple's iPad Chip Development Cost Estimated in $1 Billion Range - Mac Rumors

O_O! Thats a lot of digits!