Apple might be charging over two times what it costs to build the iPad Air 2.
A new report from research firm IHS revealed that the iPad Air 2 16GB with Wi-Fi costs Apple $275 to build. This translates to £170 sterling.
Apple retails this model in the UK for £400 – that’s 2.3x the cost.
Perhaps a more brutal revelation is how Apple marks up its storage capacity increases.
The report revealed that it costs Apple just $60 (£37) to boost a device up to 128GB from the standard 16GB fare.
Head over to the UK Apple store, however, and you’ll find an incredible £160 price difference – that’s 4.3x what it costs the fruity firm.
While it’s no surprise that Apple doesn’t sell its products at cost – it has overheads to meet, of course – the sheer breadth of the profit margins are notable.
Interestingly, the report reckons the iPad Air 2 touts similar costs to the original iPad Air, although profits are slightly lower this time around.
Apple revealed the iPad Air 2 earlier this month, launching the new slate alongside the equally fresh-faced iPad Mini 3 .
The new Mini 3 has been widely panned by reviewers for offering little more than a new colour option and Touch ID in terms of upgrades from the iPad Mini 2.
The issue arose when Apple put an £80 price difference between the two models. Not great value when you consider the minimal changes.
The latest IHS report is sure to add fuel to the fire that’s shedding light on Apple’s aggressive mark-up strategy.
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Via: Re/code