Apple is well known for its high prices, but newly leaked details concerning the Motorola Xoom’s components have revealed that Motorola’s tablet device costs more to manufacture than Apple’s iPad.
At present, the iPad 3G 32GB model is priced at $729 and the newly released Motorola Xoom costs $799.
However, there is valid reason for this higher price tag, according to IHS iSuppli.
Thing is, if Apple’s iPad 2 is similarly priced to its original iPad, which it very well could be, Motorola could have quite a price war on its hands.
The total bill of material (BOM), according to IHS iSuppli, for both the iPad and Motorola Xoom is as follows:
Xoom – $359.92
iPad – $320
Here’s the exact BOM break down courtesy of IHS iSuppli:
Display: The Xoom’s display is the most expensive component, costing $140 – 38.9 per cent of the BOM.
Memory: Next up is memory, which is the second most expensive aspect of the Xoom. 32GB of flash memory for the Xoom costs $80.40 – 22.3 per cent of BOM.
Processor: The Xoom’s dual-core Nvidia processor and associated components cost ($20.78) is nearly twice that of Apple’s Apple A4 processor ($11).
Camera: Having two cameras on a tablet don’t come cheap and the Xoom’s front-facing and rear shooter costs Motorola $14 – 3.9 per cent of BOM.
Nevertheless, Apple is expected to include a new dual core processor, two cameras and more RAM in its iPad 2, which it announces later today – something that will no doubt push up the pricing of the device.