In a teardown analysis, conducted by UBM TechInsights, revealed that the new A5 processor, used in iPad 2, has a production cost of $25, making it more expensive than $15 Tegra 2 processor found in Motorola Xoom. Yet, the BOM of the 32GB iPad 2 stands at $270 against 32GB Xoom’s $288.
The new A5 processor, produced by Samsung, comes with 46 nm Low Power DDR2 memory and uses variable clock speed. UBM TechInsights performed two teardown analysis at two locations- Austin and Ottawa and found out that the iPad 2 uses LPDDR2 RAM of Samsung and Elpida. The LP DDR2 RAM from Samsung is the first one to use the Samsung K4P2G324EC LPDDR2 die.
In terms of size, the A5 processor is larger (12.1mmx10.1mm) than A4 processor (7.3mmx7.3mm).
So, how is it possible to keep the iPad 2 lower priced? UBM Engineer and Technical Marketing Manager, Allan Yogasingam, said that Apple orders large volume of chips which brings the cost down significantly and the A5 will be found in most of the
next-gen Apple products including the iPhone 5 and iPod Touch.
The teardown analysis also revealed that the new iPad 2 comes with 512MB memory which is higher compared to the 256MB memory of the first-gen iPad.
iFixit tear down analysis also revealed that the iPad 2 uses a Toshiba TH58NVG7D2FLA89 16GB NAND Flash memory module. Other chips found in the device are- Broadcom BCM43291HKUBC Wi-Fi/Bluetooth/FM tuner combo chip, ST Micro AGD8 2103 gyroscope, ST Micro LIS331DLH accelerometer, and Broadcom BCM5974 CKFBGH capacitive touch-screen controller.