The Secret Behind the iPad’s Low Price
January 31, 2010 by Bill Sobel
Filed under Technology
Wondering how Apple can sell the iPad for under $500?
from BNET
Apple iPad Price, Features Say “ARM” All Over
By Chris Dannen | Jan 27, 2010
Here’s what you need to know about the iPad: it’s a 9.7-inch touchscreen pad that’s half an inch thick, sports WiFi and 3G, and runs apps, reads e-books and lasts 10 hours on a charge. And it’s one of the best things to happen to Intel (INTC) rival ARM Holdings (ARMH).
Looks cool, right? You might be bracing for the price tag. But when you look at it, as compared to smartphones, netbooks and Kindles, it really isn’t too bad at all.
Why? It’s largely because one of the most expensive components — the processor — is a custom-made, in-house Apple (AAPL) 1GHz chip called the A4. In April 2008, Apple bought a chip company called PA Semiconductor, which according to Forbes at the time was “known for its design of sophisticated, low-power chips.” Forbes also said this was a “blow for chip-maker Intel,” which had been trying to sell Apple on its low-power Atom chips.
FOR THE COMPLETE STORY CLICK HERE
Subscribe
