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Exclusive Video Teardown: Apple iPad Air

Apple Inc.'s profit margin on the company's iPad tablet—already the envy of many tablet-making OEMs—is ratcheted up even further with the latest entry, the iPad Air, according to a teardown analysis performed by the IHS Teardown Analysis Services team.

The 16-GB version of the iPad Air, which hit stores late last week, carries a lower bill of materials (BOM) cost compared to the the third-generation iPad introduced last year, according to IHS. The preliminary estimate of the BOM for an iPad Air with 16 gigabytes of NAND flash memory and cellular connectivity is $304, down 6 percent from the $325 BOM for an equivalently equipped third-generation iPad at the time of its release in 2012, IHS said.

Including an additional $6 for manufacturing cost, the total cost to make the iPad air is roughly $310 per unit, according to IHS. A low-end iPad Air model with 16GB of NAND and no cellular connection, carries a BOM of $274, according to IHS.

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