Many might be surprised at the cost of all the components of the iPad Air: this new tablet’s bill of materials (BOM) is actually lower than that of one of its predecessors.
IHS disassembled this new tablet to see what it’s made up of. The company reports that all the components of the 16GB, Wi-Fi-only model cost $275. When IHS performed the same procedure on the iPad 3, the total was $315.
It should be noted that these totals do not include the cost of assembling the tablet, nor shipping or advertising it, so it would not be correct to say that Apple’s profit margin on the iPad is almost 50%.
Although the overall cost of the components has gone down, the price of the screen has gone up. That’s because Apple included some advanced materials so that the display could be thinner and use fewer LED backlights more efficiently.
The A7 processor, which is actually produced by Samsung, costs $18, and the cellular chips in the models that have them cost $32.
Accoding to IHS, the BOM of the most expensive version of the iPad Air — 128GB and cellular-ready — is $360.