The tablet's display has proven to be a costly component, according to IHS. The researchers told All Things Digital that the screen costs $90, while the touch screen parts set Apple back $43. The display, in other words, takes up approximately half the cost of the cheapest iPad Air. Beyond that, Apple was able to cut down on costs quite effectively. According to All Things Digital, IHS claimed the base iPad Air model is $42 cheaper to produce than the third-generation iPad base model. Apple was able to save that cash by not changing its tablet too dramatically, thus improving the deals it could ink with suppliers. The A7 chip, for example, costs Apple $18 -- $5 less than the A5 processor cost the company last year.
Even with Retina Display, the slate is cheaper to produce than previous models, meaning the company makes hundreds on each unit sold, Apple's iPad Air is making the company more cash with every unit it sells, according to new data from research firm IHS, The iPad Air costs between $274 and $361 to build, depending on the model, according to IHS data that All Things Digital published Tuesday, Apple sells the iPad Air for between $499 and $929, meaning it makes hundreds of team sophie iphone case dollars on every unit it sells..
HTC executives said that the company plans to limit this quarter's operating expenses to around $340 million, 24 percent lower than what was spent last quarter. However, HTC didn't explain how or where it would cut costs. Two of the company's flagship products -- the HTC One and the HTC One Max -- have faced problems. Supply issues adversely affected the HTC One earlier in the year, while the One Max has failed to drum up much consumer demand. "Their profit driver for the quarter is HTC One Max, which is not a very competitive product," Yuanta Financial Holding analyst Dennis Chan told Bloomberg. "HTC One was a good phone but faced supply chain problems. Now HTC One Max has no supply troubles, yet it's not a strong product."HTC also plans to release less-expensive smartphones in a bid to grab a wider audience.
"We're looking at broader products in this quarter," said HTC Chief Financial Officer Chia-Lin Chang, according to Bloomberg, "We aim for higher volume into 2014 that will give better profitability."Also in the third quarter, HTC suffered its first-ever quarterly loss, reporting a decrease of $102 million, CEO Peter Chou tried to paint a brighter picture in Tuesday's earnings report, "We have delivered good progress in the third quarter with the introduction of HTC One Mini and One Max; we now have an HTC One for everyone," Chou said, "We have also launched the 'Here's To Change' global brand campaign, affirming our role as the change-maker challenging the status quo since the dawn of the mobile phone industry, as well as our mission of continuing to bring change into the team sophie iphone case hands of people around the world."..
Expecting a sluggish fourth quarter, the company plans to chop expenses 25 percent. HTC is aiming to return to profitability by slashing its operating costs. In a briefing held Tuesday, the Taiwanese company said it expects fourth-quarter revenue in the range of NT$40 billion ($1.4 billion) to NT$45 billion ($1.5 billion), according to Bloomberg. Analysts queried by Bloomberg had forecast an average of NT$52.2 billion ($1.77 billion). Be respectful, keep it civil and stay on topic. We delete comments that violate our policy, which we encourage you to read. Discussion threads can be closed at any time at our discretion.