Friday, March 12, 2010

How much is iPad?

So, today is the big day for all the APPLE maniacs: iPad is open for pre-order today, and it'll be delievered on April 3rd. I saw on the web that a lot of people were getting everything ready and waiting in front of their screens for the channel to open, which is, well, quite commonly seen actually.

According to techspot.com, it's estimated that ~ 51000 orders were placed during the first 2 hours after the line is opened.



Among all the news and articles that I've seen, there are quite a few of them discussing the true cost vs. the marked price of the iPad product. iSuppli has an estimation of the bill of materials (link) at $219.35, compared to the marked price for this model: $499.




Again, keep in mind that 1) this is just a guess based on materials (which are probably guessed too); 2) other costs that are left out here include R&D, marketing, freight, labor, etc.

When the iPhone 3GS model came out, Apple marked the 3G model down from $199 to $99, and I was kind of like, wow is Apple even profitting out of the old model? And now that I think of it...OK.....they've certainly reserved the room for mark downs.

Lastly, some fun facts:

1. Parts and suppliers of iPAD, reported by Barclays Capital Research, out of Japan: (how many vendor names have you heard of?)

"Samsung and Toshiba as supplying flash memory, Samsung and Hynix - DRAM, Hon Hai - assembly, Broadcom - touch panel controller, Bluetooth, plus Wi-Fi with Marvell, Linear - battery power management, NXP - system power management, Coretronic - backlight, Novatek - LCD driver, LG Display and Seiko Epson - LCD Panel, Samsung SDI, Tianjin Lishen Battery - lithium-ion battery, TPK - Touch Panel Module, Wintek and Innolux - Touch Panel Sensor and Infineon - GPS and RF chips."

2. WSJ revealed via SEC filings that Apple COO Tim Cook was awarded $22 million bonus: $5 million in cash, and 75,000 restricted stock units (half of which vest on March 10, 2011, half on March 10, 2012) worth about $17 million as of today.

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