According to iSuppli, the Motorola Xoom costs $359.92 in parts to manufacture. This pricing is slightly above the $320 for a comparable 3G iPad with same 32 GB of flash memory. These two devices make for an interesting comparison as the Xoom is the closest competitor to the Apple iPad. Here are some of the highlights of iSuppli’s Xoom teardown analysis:
- The XOOM’s display and capacitive touchscreen costs a whopping $140, or 38.9% of final cost of parts
- Memory is the second most expensive part with the XOOM’s memory components costing $80.40, or 22.3% of the total bill of materials (BOM)
- The 3250 mAh battery comes in #4 and adds $23 to the final BOM
- The NVIDIA Tegra 2 processor costs US$20.78, or 5.8% of the BOM. This is twice as much of the iPad’s A4 processor which costs Apple $11
- The 5-megapixel camera on the back and the 2-megapixel device on the front carry a collective cost of US$14, or 3.9% of the BOM, which is an extra cost not incurred with the camera-less iPad
These price differences are carried over into the final cost of the devices. The XOOM is slightly more expensive to build and its final price tag is slightly higher than iPad. The XOOM is available for $799 without a contract, while the comparable WiFi+3G iPad model is $729. Looking the final bill of materials, we can gain some insight into why there is a $70 difference between the two devices. Additional details on the breakdown analysis of the Motorola Xoom is available on the second page.