iPad mini teardown pegs bill of materials at $188
posted by Daniel P. / Nov 05, 2012, 2:29 AM
This is still not far from Apple's average margins, but, of course, not all costs might have been taken into account, since Apple said that the iPad mini carries less than its typical profit margin on the conference call with analysts after its latest quarterly results.
The most likely guesstimate culprit might be the 7.9" display, which is made by LG or AUO, and commands north of 40% of the overall iPad mini cost, since it is made with a new technology that allows for thinner panels, but still has yield problems, says IHS.
Still, the only loss for Apple is if a person gets an iPad mini instead of the 4th generation iPad, where net profit is more, yet there are more than enough differences between the two. Moreover, this might be offset by the millions more iPad minis Apple will sell to people who would have gotten an Amazon or Nexus tablet, so analysts shouldn't be that worried about cannibalization, but the next quarterly results will show the true extent of it, and if there is a reason to panic about missed larger iPad sales.
Posts: 321; Member since: Sep 11, 2012
Amazon doesn't want a high profit! Oh wait their ads on the lock screen....
posted on Nov 05, 2012, 4:37 AM 1
Posts: 1869; Member since: May 03, 2012
43%?!!!!! thats huge!! apple why are you so greedy!! a lot of people (not android folks here) dream to have an (mac and iPad for simplicity, there's still people who dont like the customization of android or any other linux thats why they buy a windows PC) iDevice but its price is too much!!! for example, in my country, an average worker(permanent) can receive a salary of php 8000 or almost $200...so getting an iPad mini will cost them 2 month of their salary! you contribute to education but you're so pricey to a lot of people!
posted on Nov 05, 2012, 5:13 AM 2
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