Components and assembling HP Touchpad is priced at $328
The advent of numerous touch screen gadgets has done nothing to reduce the cost of manufacturing the devices. The most expensive among all the components of a touch screen gadget is the touch panel. The LCD screen of the HP Touchpad, which is sized at 9.7 inches alone, costs $69 for manufacturing. Other accessories of the pad cost an additional $63. All together, the cost of the touch display alone comes up to $132, which is higher than a third of the entire manufacturing cost.
Memory component is one of the most expensive components of the gadget
After the touch display, the other most expensive component is the memory component. The 16GB hardware costs $23 and the 32GB hardware costs $45. All the other components such as the glass, panel, USB connectors, and other miscellaneous items required to prepare the gadget cost only $30. The total cost of the gadget just for manufacturing comes to $328.
The estimate is exclusive of other expenses
This amount is excluding other production criteria such as cost of transportation, energy requirements and labor. Supply, who conducted the research, said the costs calculated were only based in the components. Research and development of the gadget is also not included in this estimate. Nevertheless, the gadgets are sold at almost double the price and the amount is recovered manifold.
Apple Ipad costs $325 for manufacture
On similar lines, the Apple Ipad was deconstructed and evaluated for individual components. According to the release by iSupply, it was found that Ipad by Apple costs around $325. The market rate at which the device sells is $599. This is the rate of the Wi-Fi enabled 32 GB Ipad by Apple. The DRAM unit, which is a product of Samsung, costs $26. For each touchpad, the cost of the Qualcomm processor comes up to $20.
Hp touchpad sells with a margin of at least $175
While the cost of manufacture comes up to $328, the gadgets are sold for $499 for the 16GB model and $599 for the 32GB model. The margin is $193 on the 16GB version and $271 on the 32GB version. As mentioned above, Apple iPads cost a tad less in manufacturing cost than the HP Touchpad and hence, the profit margins are slightly higher for Apple. The Apple iphone costs $325 in manufacture and is priced at $599.