ipad air build cost tear down

We’ve already seen the iPad Air torn apart by iFixit to check its repairability, but now research firm IHS has opened up the device to figure out how much Apple spends on its components. The results are in, and it turns out the new tablet may feature a more expensive display but a cheaper build cost overall than previous iPad models.

Speaking with AllThingsD, IHS placed the iPad Air build cost between $274 and $361 depending on which model you choose, while the cheapest Wi-Fi version sells for $499 from Apple. At $274, IHS claims the new entry-level tablet is still $42 cheaper to assemble than the third generation iPad. The firm didn’t assess the iPad 4 last year, instead tearing down the iPad Mini, which it said costs $188 to assemble. The iPad mini currently starts at $299.

IHS says the most expensive part of the iPad Air is its display, which now costs $90, while the touchscreen technology found in the device costs another $43. However, Apple now uses one layer of glass instead of two, and also includes fewer LED lights, switching out the previous backlighting for a more efficient and brighter model. The firm prices each A7 chip at just $18 ($5 less than the A5 cost), while Qualcomm’s LTE processors are priced at $32 each.

With a lower build cost, higher price tag and booming sales, Apple stands to make a mountain of cash off the iPad Air.