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iPad Mini build cost starts at $195 and retail cost starts at $299

Apple is expected to release or announce the 7.85 inch smaller first generation iPad Mini on the 23rd of this month, that is two days from today. We know a lot about the device through rumors. Rumors about a smaller iPad started around two and a half years back, but it is now starting to turn true. Specs wise, we know that it’s going to run on an Apple A5 processor, it is going to feature a 7.85 inch screen, and is going to be thinner than the refreshed third generation iPad. But what about the cost of the device? That is the only question that is still open for debate.

But thanks to an analyst who has done some extensive research to put it all out to the public. We know now how much it costs Apple to build the tablet, how much it is going to sell the tablet for, and how much it is going to gain from each tablet sold. The figures are just impressive. You may think that since the company is pitching this iPad Mini against some very aggressively price budget tablets such as the Google Nexus 7 and the Amazon Kindle Fire, the price of the iPad Mini would be less expensive. But that is not the case.

According to KGI Securities analyst Ming-Chi Kuo, the Apple iPad Mini should range from $195 to $254.50 for the 16GB WiFi model and 64GB LTE model, respectively.  This figure prices in the parts and labor, which would gross out to a spectacular 35% to 58% profit margin.   Kuo identified the most expensive part being the screen, estimating the overall screen component cost to be around $56.50.  The high end technology should allow the iPad mini to be thinner than the regular iPad by as much as 18%.  Check out the breakdown shown in the chart above for the anticipated costs for the components of the next Apple iPad mini.

SourceAppleinsider via Phone Arena

3 Comments

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  1. “The same experience with a Windows product…” doesn’t happen! Thats right and for good reasons. It doesn’t happen with an Android product either. Apple has spent years building products that fully integrate with each other and a support system that they control and enhance because they OWN the entire system. They build better products hence they work better and better together. The total cost of hardware only represents about 20% of the total cost of ownership so Microsoft cannot build a likeness to Apple and neither can anybody else because they only own and control a very small portion of the total system experience. This goes all the way back to the founding of Microsoft when Gates sold IBM the non-exclusive license for DOS and then sold the same thing to everybody else and lost control of the ‘experience’.
    To expect any company to build a likeness to what Apple has created using ‘cheap’ knock-off alternatives is to ignore the real innovation contained in the Apple product line in it’s entirety. If another company where to come along and truely create a new and innovative product line rather than copies of the same thing, they too might grab huge chunks of the market share before the competition can.
    Apple is smart to build the iPad mini now and it is worth the extra change. The iPad mini like its iPad big brothers is still built with the 16:12 aspect ratio and has LTE connectivity. Any WiFi only competitor can only work effectively when sitting in front of your Fireplace to read a book or travelling on a plane if you pay extra for the Wifi.
    These two important features along with everything else Apple already offers a customer will play out to be the winning hand for Apple.
    So Microsoft is creating more competition for Android but the Surface and Androids will never be what an Apple product is. They may battle it out between themselves but they will always rank second and third. Place and Show!

  2. Wow! First off let me say who anyone votes for is on them. Pepsi or coke. You understand? And yes apple over charges and that’s a fact and also their right. There are tablets from all over the world equal or better the the great ipad (and it is) and they are way cheaper. Its a close race between making a great product and loads of doe when it comes to them. But its business so more power to them but trying to justify it as if it’s reasonable is ridiculous. The late great Steve Jobbs made it no secret that he wished all tablets were iPads and all other companies fail behind them…. that’s not American my friend. Or is it?

  3. so you’re pointing out that one of the selling names in the country is being profitable? whats going to pay for the advertising? and the ridiculous overhead that the company has? Apple offers quality and a good experience. It’s a very well run company. You can’t even proof read your article title. You walk into best buy and as for the same experience on a windows device, that doesn’t happen. I’m not saying one is better than the other. I’m saying that they are selling more than a product. You want all of it but you don’t want to pay for it. I’m guessing you’re voting for Obama too then?

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