iPad mini teardown pegs bill of materials at $188

posted by Daniel P. / Nov 05, 2012, 2:29 AM

iPad mini teardown pegs bill of materials at $188

IHS iSupply have done their usual iPad mini teardown and bill of materials estimate, and they peg the cost to build it at $188. For a tablet that starts at $329, this represents a 43% gross margin, with net probably hovering in the low thirties.

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.

via WSJ

Options

9 Comments

1. mydi.maus unregistered

come on mini,why?

posted on Nov 05, 2012, 2:42 AM 3

2. fistigons

Posts: 368; Member since: Feb 11, 2012

I think Apple should have skipped the in cell display tec and went with a higher resolution display. May have kept the price down. Or they wanted to save it for theiPad mini 2.

posted on Nov 05, 2012, 2:54 AM 3

3. xray174

Posts: 85; Member since: Nov 21, 2011

they just care about $ overall fck that

posted on Nov 05, 2012, 4:00 AM 0

4. Kronic

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

5. pikapowerize

Posts: 1869; Member since: May 03, 2012

thats how google and amazon get their money...ads!!! annoying ads!

posted on Nov 05, 2012, 5:07 AM 1

9. kozza3

Posts: 778; Member since: Oct 17, 2012

*disable

posted on Nov 05, 2012, 12:25 PM 0

6. pikapowerize

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

7. Aeires unregistered

This based on standard equipment prices or Apple's rates? We all know Apple has strick contracts for components, I'd be surprised if their profits weren't even higher.