Natalie Parkinson
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Is iPad Air profitable device?

Apple Inc. hasn’t said yet how well the iPad Air did over its launch weekend, but a teardown report from IHS iSuppli on Tuesday suggests the company has improved its profit margins on the full-sized tablet

IHS iSuppli estimates that it costs Apple about $310 to build the 16GB version of the iPad Air with cell connectivity. This version sells for $629 in the U.S. — implying a margin of about 51% for the device. IHS estimated a $358 build cost for the third-gen iPad last year at a similar point in its lifecycle, implying a margin of about 43% for that version.