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iPad mini profit margin is "significantly below" Apple's average

0. phoneArena 25 Oct 2012, 17:45 posted on

We've already seen that Apple's earnings call was a bit of a mixed bag, and that for the third quarter in a row, Apple collected less in profits than the quarter before. It looks like that may be a trend, as Apple has also said in the earnings call that the iPad mini is being sold at profit margin "significantly below" the average Apple product...

This is a discussion for a news. To read the whole news, click here

posted on 25 Oct 2012, 17:47 1

1. plgladio (Posts: 311; Member since: 05 Dec 2011)


Michael: Seems you posting lot today..

posted on 25 Oct 2012, 17:50 1

2. plgladio (Posts: 311; Member since: 05 Dec 2011)


"Just how much of a profit should be revealed when the teardowns start coming next week"
Does that contain diamond chips?
:P

posted on 25 Oct 2012, 17:53 2

3. gallitoking (Posts: 4684; Member since: 17 May 2011)


is brand recognition.. is what the Apple logo represents to people that is not included on those comparison

posted on 25 Oct 2012, 19:20 4

16. tedkord (Posts: 4595; Member since: 17 Jun 2009)


To some people, that logo is all that matters. Slap it on a turd, record sales.

You know which people, don't you?

posted on 25 Oct 2012, 19:44 4

17. someones4 (Posts: 618; Member since: 16 Sep 2012)


the apple logo represents a whole new generation of overpriced products, stolen designs and false innovation.

posted on 25 Oct 2012, 17:57 2

4. pikapowerize (banned) (Posts: 1869; Member since: 03 May 2012)


LOL... thats already below average? my god... what a .... oh never mind... what can i expect - they are apple..even i like apple devices...

posted on 25 Oct 2012, 18:00 4

5. wendygarett (unregistered)


You make a big mistake Mr. Cook, if you think you can convince us that iPad is better because of bigger screen than nexus 7 you are wrong. We don't wanna low resolution display.

you also an Apple user and you must know by now that we want quality (brightness) not quantity (big-ness)

posted on 25 Oct 2012, 18:04 2

6. redmd (Posts: 877; Member since: 26 Oct 2011)


OT, and here I thought you were a sexy chick. you evolved man.

posted on 25 Oct 2012, 18:07 1

8. wendygarett (unregistered)


Lol that person is my cousin, but yeah I'm dude :)

posted on 25 Oct 2012, 18:14 2

9. MichaelHeller (Posts: 2666; Member since: 26 May 2011)


Keep in mind that the whole point of the resolution being as it is is to avoid compatibility troubles with tablet apps in the App Store. Everything will automatically work, because this is the same resolution and same aspect ratio as the iPad 2, just on a smaller screen.

posted on 25 Oct 2012, 18:18 2

10. wendygarett (unregistered)


But isn't that below 200ppi is kinda awkward? It's kinda blur don't you think?

posted on 25 Oct 2012, 18:22 1

11. MichaelHeller (Posts: 2666; Member since: 26 May 2011)


I'll have to see it in person, but I doubt most people will really notice the difference. I'm just glad to see that Apple isn't forcing devs to update all their apps for a new product.

posted on 25 Oct 2012, 20:10 1

19. someones4 (Posts: 618; Member since: 16 Sep 2012)


the cfo is related to oppenheimer?

posted on 25 Oct 2012, 18:36 2

12. pikapowerize (banned) (Posts: 1869; Member since: 03 May 2012)


and BTW iPad 2 screen is just ok for me.. not having a problem!

posted on 25 Oct 2012, 18:06 3

7. Savage (unregistered)


The whole point of a 7" tablet is compact-ness (if thats even a word) and being priced low. Apple put a screen size bigger than its competitors and priced it "premium". Add to that, old hardware. You surely don't expect to be a success, right?

posted on 25 Oct 2012, 18:37

13. BadAssAbe (Posts: 434; Member since: 22 Apr 2011)


I like to take a guess
iPad Mini 16GB $330 - $50 profit (not bad)
iPad mini 64GB 4G $830 - $200 profit (bad)

posted on 25 Oct 2012, 18:40

14. darkkjedii (Posts: 10827; Member since: 05 Feb 2011)


64 gig 4g mini is 680 not 830

posted on 25 Oct 2012, 19:18

15. BadAssAbe (Posts: 434; Member since: 22 Apr 2011)


Yeah your right, i meant $630 with $200 dollor profit

posted on 25 Oct 2012, 19:46 1

18. someones4 (Posts: 618; Member since: 16 Sep 2012)


A lower profit margin for apple will still be very very high for others. What's cheaper than a kidney?

posted on 25 Oct 2012, 20:47

20. RangersK (Posts: 59; Member since: 15 May 2012)


So 30% of margin?

posted on 25 Oct 2012, 21:11 2

21. JonBjSig (Posts: 176; Member since: 17 Nov 2011)


When I saw the iPad mini price I thought "Wow, that actually seems reasonable".
Then I saw the specs.
Then I remembered that it's Apple so $330 is still kind of reasonable.
But that's only the 16GB WiFi version, when you go up in storage the price goes up 100$, plus another 100$ if you want cellular, that's a lot.

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