SAN FRANCISCO (AP) — Apple trimmed the cost of making its latest iPad along with the tablet computer's width and weight.


The research firm IHS Inc. estimates the iPad Air that sells for $499 costs Apple Inc. $274 to make. That's a 13 percent decrease from Apple's cost of $316 to make a comparable iPad from the third-generation model introduced last year.


The estimate released Tuesday was drawn from an analysis of the parts in the iPad Air, which went on sale last week.


Based on the cost of production and sale price, Apple is charging an 82 percent markup on the iPad Air.


Lowering the cost of making the iPad Air could help Apple reverse a recent slump in its profits that has contributed to a 25 percent drop from the company's peak stock price in September 2012.


Apple's earnings have fallen from the previous year in each of the last three quarters



Earlier on HuffPost:




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  • Camera Case


    Disguise your iPad as camera. Or, for second and third generation owners, give your subjects something to look at when you take photos with the iPad.




  • Super Mario Style


    This self-designed iPad decal is reminiscent of the original Nintendo Game Boy.

    (<a href="http://www.flickr.com/photos/korosirego/7023604367/" target="_hplink">Image via Flickr</a>, Rego Korosi)




  • Bling Bling


    If you're going to bling out your iPad you might as well go all the way. This <a href="http://www.etsy.com/listing/98722161/16ss-crystal-ab-iridescent-diamond?ref=sr_gallery_7&ga_search_query=diamond+ipad&ga_view_type=gallery&ga_ship_to=ZZ&ga_min=0&ga_max=0&ga_search_type=handmade" target="_hplink">iPad case on Etsy</a> is created from Swarovski crystals.




  • Preppy Case


    iPad owners with tailored shirts can custom fit a <a href="http://www.etsy.com/listing/69665501/recycled-vintage-ipad-outfit" target="_hplink">collared sleeve</a> for their device. But, no popped collars. This case is to classy for that.




  • Shag Rug


    The <a href="http://www.etsy.com/listing/97792755/ipad-1-ipad-2-shaggy-faux-fur-case?ref=sr_gallery_12&ga_search_query=ipad+fur&ga_view_type=gallery&ga_ship_to=ZZ&ga_min=0&ga_max=0&ga_search_type=handmade" target="_hplink">shaggy case</a> is the perfect option for iPad owners who want to hide the device completely.




  • Duct Tape Case


    There's nothing like a <a href="http://www.flickr.com/photos/andrewwippler/4524112826/sizes/l/in/photostream/" target="_hplink">duct tape case</a> for the do-it-yourself crowd.

    (<a href="http://www.flickr.com/photos/andrewwippler/4524112826/" target="_hplink">Image via Flickr</a>, Andrew Wippler)




  • Creative Case


    This iPad case gets extra points for creativity -- and for <a href="http://www.etsy.com/listing/96349637/whos-the-fairest-of-them-all-ipad2-case?ref=sr_gallery_16&ga_includes%5B%5D=tags&ga_search_query=ipad+2+gold&ga_search_type=all&ga_view_type=gallery" target="_hplink">making a Snow White reference</a> without including the Apple logo.




  • Apple Juice


    Care for some apple juice? This decal created by <a href="http://www.etsy.com/people/moodecal?ref=ls_profile" target="_hplink">Cimarar Dal</a> on Etsy pokes fun at the Apple name by surrounding the logo with an <a href="http://www.etsy.com/listing/97662999/ipad-decal-ipad-sticker-art-skin-decals?ref=sr_gallery_43&ga_search_query=ipad+design&ga_view_type=gallery&ga_ship_to=ZZ&ga_min=0&ga_max=0&ga_page=9&ga_search_type=handmade" target="_hplink">outline of a juice box</a>.




  • Gold iPad


    In case you ever wanted to cover your iPad in gold -- a process that costs well beyond the total price of the product -- U.K. luxury designer Stuart Hughes gives you the option.




  • Monster Sleeve


    Grrr argh! Sometimes technology <a href="http://www.etsy.com/listing/97572122/orange-ipad-monster-sleeve?ref=sr_gallery_6&ga_search_query=ipad+fur&ga_view_type=gallery&ga_ship_to=ZZ&ga_min=0&ga_max=0&ga_page=2&ga_search_type=handmade" target="_hplink">can be a monster</a>.