November 4, 2012

Teardown Shows Apple iPad Mini Costs at Least $188 to Build

Arik Hesseldahl, writing for AllThingsD:

“Previously known as iSuppli, and widely known for its so-called ‘teardown’ analysis reports, IHS has just completed its teardown report on the Apple’s newest iteration of the tablet. The verdict: The base model, a Wi-Fi-only 16 gigabyte iPad mini, which sells for a starting retail price of $329, costs about $188 to build.”

That's about a 43% profit margin, about par for Apple computing products.

The company was criticized for pricing the new iPad mini at over $100 above competing 7-inch tablets, which misses the point. Apple doesn't compete in the usual race-to-the-bottom. They sell to people willing to pay for a finer product. It appears to be working.

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