Analyst says mini Apple iPad coming before Xmas
The analyst says that he sees the bill of materials for the smaller Apple iPad coming in at less than $200 with a total cost of goods slightly above $200. Hargreaves says that this will lead to a $299 retail price tag for the mini iPad and that would provide a gross margin of 30% for Apple on the unit. He expects the manufacturer to save money by employing a glass-film-touch technology instead of the more expensive glass-glass-touch it uses on the Apple iPhone and the larger Apple iPad models. That alone would cut $50 from the cost of producing the smaller tablet. Add to that the use of a smaller battery, the employment of the A5 processor and a reduction to 8GB of native storage and Apple might be able to find itself with gross margins north of 30%.
Just the other day, a reliable source told iMore that Apple would release a 7 inch mini iPad that would cost $200 to $250 so that Apple could compete with low-price Android tablets like the Amazon Kindle Fire. But that report is the odd man out as most of the speculation has centered on a 7.85 inch display on the mini iPad.
Where there is smoke, there is fire and all of the rumors about a mini version of the Apple iPad would seem to indicate that there is something to all of the speculation.