HP TouchPad costs $328 to make

Staff writer
07 Jul 2011
00:00
News
Commentary

The 32GB version of HP's new TouchPad tablet uses parts that cost a combined $318, IHS iSuppli has estimated.

Adding an estimated $10 manufacturing cost, the production cost totals $328 for the high-end model – which retails for $599. IHS pegs the low-end 16GB model at costing $306 to produce, compared to a retail price of $499.

The estimate – which does not include other expenses such as software, licensing, royalties and other expenditures – shows that the $69 display is the most expensive portion of the TouchPad design, followed by the $63.50 capacitive touch screen assembly.

Andrew Rassweiler, senior teardown director for IHS, said the teardown shows the similarities and differences between HP's and Apple's tablet approaches.

“The TouchPad in some ways does closely resemble the original iPad, with its use of the same LG display Apple used in the first-generation iPad, and by initially offering a product that only employs Wi-Fi as its exclusive wireless connection,” he said.

But he said there are major differences between the two platforms. “Unlike the iPad, the TouchPad does not try to push the design envelope with an ultrathin form factor or in the use of exotic materials.

“HP’s choice of plastic enclosure adds to the increased thickness of the device, which also results in the density of the electronic design being much lower compared with Apple products. Furthermore, the TouchPad also features a built-in wireless charging system, something we haven’t seen in other tablets to date.”

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