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.