iPad mini bill of materials estimate suggests Apple would price tablet at $299
One thing we’ve come to expect so far is that the iPad mini will be a cheaper iPad. The arrival of $199 7-inch tablets like the Nexus 7 and the Kindle Fire have opened a new price niche where Apple doesn’t have a competing product. But how much could the iPad mini cost, so that it’s both competitive and money-making? Looking at the bill of materials for the Nexus 7 and earlier the Kindle Fire, Apple should price it at $299 if it aims for 30% or bigger gross margin, according to the Tech-thoughts blog.
The two big questions left are the processor and the display. The iPad mini processor could be the same one as on iPad 2,4, the latest version of the iPad that Apple is releasing with a 32nm A5 chip. The display is the most expensive thing in the iPad mini - it’s expected to feature the same resolution as on the iPad 2 (and that’s 1,024 x 768 pixels) but at a smaller size.
Now, if Apple manages to get the display price lower, it seems possible that even at $249 the iPad mini could sell with a gross margin of more than 24%. If not, and Apple continues its high-margin strategy, the price of the iPad mini should be $299.
What do you think of the possibility of such an iPad mini, would you buy that?
1. desijatt (Posts: 57; Member since: 28 Aug 2012)
that's not correct........apple has a very high price margins over its products....):
10. Dr.Phil (Posts: 921; Member since: 14 Feb 2011)
That's most likely $299 for an 8GB version though, and possibly a 16GB version for $350. Now do you think it's incorrect?
2. hung2900 (Posts: 813; Member since: 02 Mar 2012)
Wrong computation. You cannot ignore marketing, delivering, storing and labour costs. Including them, the gross margin should be much lower and apple won't accept it.
4. neutralguy (Posts: 1152; Member since: 30 Apr 2012)
probably around $350 or 400. that would be the price.
3. MeoCao (unregistered)
Nothing beats N7!
5. iSometimes (Posts: 45; Member since: 16 Feb 2011)
$249 sounds right to me.With that price point, they will attract a lot of customers as well as make profit. Anymore would allow customers to seek other options, such as those mentioned above. Several people will purchase it as it has the name "Apple" in it, but settling for a lower price will help Apple.
8. kshell1 (Posts: 1143; Member since: 05 Oct 2011)
Apple is only in it for the money thats all there is to it.
9. eman99 (Posts: 238; Member since: 03 Aug 2010)
at 250 i would purchase but I dont think that would happen
11. pikapowerize (banned) (Posts: 1869; Member since: 03 May 2012)
i think apple will be terrible if they price this iPad mini higher than $200..