How Much Does That New iPad REALLY Cost To Make?

Fortunately for all of us, that burning question has a relatively reliable answer. A company named iSuppli broke the costs down and determined that the components for each of the released models of iPad come in at the following totals for parts:

iPad 16GB version – $259.60 ($236.40 profit for Apple)

iPad 32GB version – $289.10 ($309.90 profit for Apple)

iPad 64GB version – $348.10 ($350.90 profit for Apple)

Roughly a 50% margin, give or take. I don’t believe that includes assembly or getting the devices to the States, as well as other charges involved with product marketing, store shipments, etc. Still not bad given that prices on hardware will continue to decline over the life of the product giving Apple even more margin over time.

Interestingly enough, more than 40% of the iPad’s costs are consumed with components powering the touchscreen display and user interface of the device. Here’s what I gathered for individual component costs for those interested:

Touchscreen Display – $95.00

Processor/Main Chip – $26.80

Flash Memory Chips – $29.50 (16GB); $59.00 (32GB); $118 (64GB)

Broadcom Chip for Bluetooth & Wi-Fi – $8.05

Texas Instruments Chip to help control touchscreen – $1.80

2 Additional Chips used to control touchscreen – $3.70

Ciruss Logic Audio Chip – $1.20

Aluminum Casing on Device Back – $10.50

For as expensive as everyone complains Apple hardware has always been, a 50% gross margin doesn’t seem out of line by any stretch. They make great devices that I’ve always felt last longer than their counterparts.



Apple Got Me…Again

I really had no intention of buying an iPad on Saturday. My plan was to wait for the 3G version thinking the built in connection to AT&T would come in handy. Well, Saturday came and something happened around mid-afternoon. One of my kids asked, “Dad, are we getting an iPad today?” which led to game over. It was like the unseen Apple gods had flipped a switch in my Apple psyche and I started dialing for iPads.

I tried two different Apple Stores, both of which were either out or almost out. I tried several Best Buys. No luck. Then…JACKPOT!!! What I assumed to be the busiest Apple Store in Portland reported having all three models in stock with barely a line. They closed at 8:00pm and I got there at around 7:30pm. After less than 5 minutes in line, not even enough time to partake in the snacks they had out for customers waiting to get into the store, I was introduced to my Apple sales guru and ushered into iPad-land.

I opted to skip all of the hands on fluff and just buy. I was out of the store, iPad in hand, less than 10 minutes later. Don’t know if it’s true, but a couple of the store employees mentioned the iPad allotment to their store was based on the number of pre-orders that were to be received in the same location. They had a counter full of iPads left when I walked out at near the end of the day on Saturday.

So, why did I break down and get an iPad on Saturday? There were 3 big things that swung me to accelerated purchasing:

1. New Apple Toy Envy – This is probably why I buy just about anything new Apple comes out with. They just make sweet gear. Having something THE DAY it comes out from Apple is like going to see a highly anticipated movie at midnight on the day of it’s release. It’s just plain fun and all your friends envy you.

2. Wifi/Non-3G Version – After committing to the 3G version, I decided that that WiFi version of the iPad actually made more sense. I already have a Sprint Overdrive that gives me both 3G and 4G service (on Clear’s network), so in most areas I’ll use an iPad, I will actually have faster service than if I had the built in 3G service from AT&T. Not to mention I won’t be saddled with another $30/mo in fees. The Overdrive fits in a pocket, is a no brainer to use and acts a personal hot spot, so it will be only slightly less handy than having the service built into the iPad. Also, it’s just rare anymore that I’m not in a spot with WiFi of some sort.

3. Cost Savings – The WiFi version is cheaper and I’m now saving $30/month on service fees. How often can you be an early adopter and actually SAVE money?! Hey, I didn’t say all 3 reasons for impulse buying were solid.

In the end, I really have no complaints. Even when my wife said, “So what exactly are you going to do with it?” That’s actually part of the fun of the iPad in my opinion…figuring out what you’re going to do with it.


Will It Blend – iPad Edition!

Well, I haven’t stepped up to the plate and snagged an iPad yet (although other team members have, so hopefully we’ll get some good hands on here soon) but there’s nothing like a good Will It Blend episode with a new Apple product at the heart of it.

Enough rambling, check out the video.


Apple iPad Pre-Orders Now Delayed

I was reading a press release this morning about the Apple iPad Pre-Orders. It indicated all pre-orders going forward were going to be delayed on the Wi-Fi units until April 12th with the Wi-Fi + 3G versions still coming “late April”. We’re almost to April and no date on the 3G models seems a bit odd. Add to it that Apple is delaying add’l Wi-Fi models for 9 days and my mind starts to wonder.

My first thought when reading that was could Apple have discovered an issue with the first run units that needs to be fixed before additional devices are shipped? All you early MacBook Air adopters know exactly what I’m talking about. We suffered through more than our fair share of problems with the first gen versions of those. Still great devices and I wouldn’t necessarily wait if I had it to do all over again.

For the iPad, I don’t know that I’d want one of the April 3rd shipped devices. Part of me wonders if it wouldn’t be better to wait until the 3G models come out (I’m waiting for 3G anyway) to at least have a little better shot at a device sans the early adoption woes.

Part of what is contributing to this paranoia is I’m really really surprised that Apple is even selling that many iPad Wi-Fi editions out of the gate. Aside from devices for press and all the giveaway iPads I’ve seen going for everything from buying insurance to selling affiliate offers to buying make money online products, I just don’t see the early adopters going for the base version. Everyone I know is waiting for the 3G edition.

Perhaps Apple has intentionally created the shortage, just like always seems to happen with these cool category changing products. Course, again, this doesn’t seem likely. Especially given that Best Buy will have iPads hitting the shelves the same time the Apple Store does this time around.

What does everyone think? Apple cover up, poor production planning, or just plain old shortage?



Apple Offering Free Hard Drive Replacements on 06-07 Macbooks

I’ve known far too many people with MacBooks that have had their drives take a dump on them. According to a post over on Gizmodo, Apple is now stepping up to replace said drives, albeit with a bit of hoop jumping:

MacBooks bought between 2006 and 2007 could be eligible for a free hard drive replacement, with Apple dodging a guilty admission, stating that “a very small percentage…may fail under certain conditions.” If you own a white or black MacBook bought between 2006 and 2007, with either a 1.83GHz, 3Ghz, or 2.16GHz processor and 60GB, 80GB, 100GB, 120GB or 160GB, you may be in luck. Or out of luck—as you have to prove the hard drive actually has failed.

Read the complete article here, or contact your local Apple store to see if your drive is covered.


4G iPhone Coming in 4th Generation?

Just stumbled across a site that is claiming to have iPhone 4G parts in hand. Looks like there are some changes to the reflective surface and the face appears to be a tad bit longer. It’s tough to say if these signify something legitimate that’s coming or if they’re just prototypes built by some Chinese rip-off device company.

Regardless, it’s still exciting to anticipate what Apple will be releasing in the next gen iPhone. I really hope it’s 4G capable and would LOVE IT if it were on Verizon.

[Source & Image:]


“Bad Day” Encourages Out Of Warranty Repair on Macbook

When Michael, from the blog found that his hard drive had taken a dump on his Macbook, he also found out that his machine was out of warranty. On his blog he posts about the experience of having an Apple store employee taking pity on his poor soul and ‘faking that it was still under warranty‘ to get his hard drive replaced.

My heart sank. I didn’t have the money to replace a hard-drive. He asked what I’d like to do, and I told him I really didn’t have any other option than to just wait until I could afford it. I’m not really sure if he could see something in my countenance, but he held up his finger and told me to wait for a moment. He walked into the back for a few minutes, then came out and told me that he’d just go ahead and “pretend” I had the warranty on my computer, and replace it for free, and even told me he would replace the crack in the keyboard that I got months previous from setting it down a little bit too hard.

If you own Mac gear, you’ll likely need a Genius Bar visit at some point. As to whether or not you agree with the dude helping out on an out of warranty machine…well, I won’t try to sway you, but I do believe in customer service, so I say two thumbs up. Hopefully Apple doesn’t track this guy down and can him.

In the past couple months, I’ve needed to hit up the Genius bar myself with the following results.

1. Volume switch fell off my iPhone – just barely out of warranty, and they replaced the phone for free.

2. Developed a single pixel line down the right side of my screen on my 17″ Macbook Pro — out of warranty, no luck. Estimated $500 repair to replace…still living with the line.

3. 2nd Gen Macbook Air hinge was getting wonky – well within warranty, they replaced the entire display assembly. HOWEVER, when I got it back, the case was tweaked and wouldn’t sit flat AND my sound was no longer working. Took it back, the replaced the bottom case, and sound card. I’m pretty sure that one turned out to be a complete replacement.

4. While in picking up the MBA, I asked about a missing plastic foot for my 17″ MBP, and they said they couldn’t just give me one, but to bring it back in and they’d replace it for free. Hopefully that means even if it’s out of warranty, since I lost a second one this week….

Gotta say, for my money, the Genius Bar has done a great job and taken care of my gear.

Via the Consumerist


Build Your Own iPad

Can’t wait for Apple to release the new iPad? Build your own iPad…well, sort of. This is more like an iPaperPad, but it will be one heck of a sweet piece of “gear” until you get your hands on the real thing. The process is pretty easy. Here it is:

1. Go here to print out the front and back of the iPad: Front, Back. Make sure you print in color on a printer capable of borderless printing.
2. Cut along the dotted lines and fold.
3. Put either a pad of paper, or a stack of heavy paper into the middle.
4. Glue everything together.
5. VOILA! You’ll be the envy of the coffee shop.

If you’ve got a large format A3 printer, you can grab a PDF that will print an iPad to full size here: iPad A3 PDF.

Personally I think it looks pretty nice. A great mod would be to use a bound pad of paper and keep the front page loose so you can use the pad underneath it. Then it would serve a useful purpose as well as be some eye candy.


Apple Introduces iPad…the Ill-named, Long Awaited Tablet.

Steve Jobs holds the new Apple iPad - image via Engadget.

This is the device everyone has been waiting for. Is it the one we’ve been waiting for here at TweakOSX? Well, that’s up in the air as of yet…but the keynote isn’t quite over yet…so here’s what we know so far:

  • half-inch thick and weighs just 1.5 pounds,
  • 9.7-inch capacitive touchscreen IPS LCD display
  • custom 1GHz Apple “A4″ chip
  • 10-hour battery life and a month of standby
  • 16, 32, and 64GB sizes
  • 30-pin Dock connector
  • speaker and microphone
  • Bluetooth, and 802.11n WiFi
  • accelerometer
  • compass.

The iPad runs iPhone apps out of the box — either pixel-for-pixel in a window, or pixel-doubled fullscreen. Developers can also target the new screen size using the updated iPhone OS SDK (available today) and take advantage of the sexy full screen.


iPad also comes in a 3G version with data plans of

$14.99 for 250 mb of transer
$29.99 for unlimited data transfer

$499 for 16GB

32GB is $599

64GB is $799.

3G models cost an extra $130.

$629, 729, and 829 with 3G.

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The Future of Laptops? Should Apple Get On Board?

The great thing about technology is that it is always changing, always evolving, always turning into the next and newest most exciting thing. The laptop was a revolutionary concept in the computer and technology world. A computer you could carry with you wherever you went. Since then companies like Apple have created all new kinds of laptops, different sizes, shapes and even colors.

The MacBook Air has been one of the newest and most exciting innovations in the laptop culture. But now, could this new Sony design outpace the likes of the MacBook Air and MacBook Touch? Check out this video and let us know what you think…