When the new iPad was nothing more than a dream, there were quite a few rumors surrounding just what the device would end up being. Now that the new iPad is a reality, most critics have said that the device is living up to the hype surrounding it in a way that even the iPad 2 couldn't do. Of course, one aspect of the release that very few people seemed to have realized is that the the upgraded Apple (News - Alert) tablet is actually bringing in less of a profit than the previous versions.
The tablet market has become one of the most competitive in the consumer tech industry and because of this, companies are having to make some significant sacrifices in order to stay in the mix. For its part, it has been widely reported that Amazon is actually losing money on every Kindle fire they make.
While Apple would never release a product that they would actually lose money on, new reports indicate that the new iPad costs more to make than the other two iPad iterations and that because of this, Apple is making less revenue on every model sold.
Industry analyst IHS (News - Alert) iSuppli has released a report that says that putting together the 32 GB iPad costs about $364.35 to put together. The company says that it costs about $335 to put together the same kind of iPad 2 and that it costs about $276 to put out the same sized iPad.
That seems to illustrate that Apple is indeed putting higher quality components in its machines and that the company understands what they need to do in order to continue to keep the iPad at the top of the tablet computer heap.
IHS iSuppli says that the higher resolution display and the larger battery are the main reasons that the new iPad costs more to produce than the iPad 2. The new screen has four times the pixel display that the iPad 2 does, while its battery has 70 percent more capacity, with the higher resolution screen taking up most of that extra capacity.
Edited by Jennifer Russell