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Research agency estimates that profit margins of the new iPad will decline


iPF Noob
Mar 9, 2012
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A research institution take a preliminary cost analysis of new parts of the iPad and estimates that apple may have to give up a little profit margin, because the new iPad high-end display and other components cost are not poor. Research UBM TechInsights agency estimates on Thursday, take the new iPad with 16 GB storage capacity and support 4 G network, sells for $629 as an example, it used the cost of components for about $310, that is, gross profit margin (namely after deducting the material cost profit margins) about 51%.

In contrast, a year ago when the iPad 2 was listed UBM estimate their gross profit rate is 56%, and now the ratio is now down to 53% : this reflects the cost down of parts and this week apple announced the influence of iPad 2 price.

The vice President of UBM business intelligence Brown (Jeff Brown) points out some key problems need to be aware of , such as to wait until March 16 after the company listed on the new iPad to equipment, taken apart by further check carefully chip and other parts of the situation.

In addition Brown said, apple may also get some compensation through the negotiations from mobile operators, because some of the new iPad use 4 G LTE. In addition, more consumers may choose to buy the new iPad with more storage capacity, because high resolution image often means more documents. According to UBM estimates, 32 GB and 64 GB model may do more contribution to apple's profits.

When mentioned Apple's profit Brown said, they can make money from other aspects.

Apple spokesman no comment.

The most notabl in the parts of the estimated cost of UBMe is the high resolution screen used by the new iPad. UBM estimated the cost of the new display screen is about $70. In contrast, according to the latest estimates, the screen of iPad 2 is only $49.50.

The other parts which take bigger part in the cost is the chip support LTE technology. According to UBM estimate, the cost is $21, while the 3 G chip used by iPad 2 is 10 dollars. In addition as UBM estimates, the new iPad use main processor chip will cost $28, and iPad 2 main processor chip is only $22.

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