Have you been wondering how much does your Tablet PCs actually cost their makers? What’s the profit margin with the simplest of Tabs available in the market? Here is an article which will give you a clear picture on this. First and foremost, we should know that more than 60% of the Tablet PCs available to us, are made or assembled at the Chinese soil. It is the reason why production cost can be as low as $35-$40.
The production cost primarily includes material’s cost, component’s varying price(quality wise), assembling and packaging cost, shipping cost, insurance, post sales service cost, documentation cost other taxes. All these are added, along with the profit margin, as a landing price for a Tablet PC.
Now, the Tabs differ in price all because of these factors. The major difference comes with the varying component’s price and the extend of arrangements made by the manufacturers in its post sales servicing department. The latter is quite obvious, so let us see how cheaply the components can be available for assembling a Tablet PC.
- Touch screen $8-$10
- Flash Memory & RAM $6-$8
- Processor $5-$6
- Sensors $2-$4
- Camera $5-$7
- Battery $5-$6
- Power Management $2
- Licensing Fee $4
- Total = $35 approx.
Further the companies add the other expenses and the profit margins to decide the selling price/piece.
Also see the latest Aakash tablet which defy all the above calculations and cost around $30.
Check out the average production cost for a single piece of tablet based on the specifications.
Single piece cost
|7 inch, Android 4.2, Dual-Cores, Capacitive Screen||$38|
|Dual-Core Tablet 7″ Cortex A9 Android 4.1||$31|
|7 inch Dual Cores Built-in 3G Android 4.2||$65|
|8 inch Dual Cores 2MP Camera||$65|
|9.7 inch Dual Cores Capacitive||$75|
See the tablet production process in a Chinese factory.