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iPad Air 2 costs $275 to $358 to build, implied profit margin of 45% to 57% (recode.net)
9 points by sc90 on Oct 28, 2014 | hide | past | favorite | 6 comments


In comparison, Apple's laptops have around a 20% to 37% profit margin. These profit margins are ridiculously high no matter how you look at it.

http://www.computerworld.com/article/2513587/apple-mac/macbo...


This article misleads in that it only includes cost of components. What about assembly, labor, R&D, shipping, and other overhead costs?


Technically, they probably meant "contribution margin"

http://en.m.wikipedia.org/wiki/Contribution_margin


> iPad Air 2 costs $275 to $358 to assemble, implied profit margin of <unknown>

Because developing a product isn't free.


Well their competitors are free to charge even more if they want :)


Actual title:

Apple’s Latest iPad Costs About the Same as the First but With Slightly Lower Profits




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