What If Apple had sold the base model as a 32GB iPad mini for $329 (and for an iPad, I suggest that 32GB is probably the minimum amount of memory required if you are going to use it as a media device)?
No one would be complaining about the price (even without the A6 chip or the Retina display) and Apple still would have made hugh profits.
Apple traditionally has a 37% profit margin for iPad base models, accordingly, the 16 GB iPad mini cost approximately $207 to make.
In a report issued in September 2012, RBC Capital Markets points out that the cost to device makers of flash memory used in tablets has declined 46% since the beginning of the year. Doug Freedman, the analyst at RBC who wrote the report, points out that while the cost of the chips has fallen, the final cost to the consumer has barely decreased at all. The report states that Apples memory costs is about 40 cents a gigabyte, so 16GB costs Apple about $6.40 far less than the $100 customers pay to upgrade.
16 GB iPad mini cost $207 to make then a 32GB iPad mini only cost Apple approximately $214 to make.
If Apple had just made the 32GB iPad Mini its base model for $329, Apple would probably have sold an additional 5 million units that will now go to the 32 GB Kindle and the 32 GB Nexus 7 (both which sell for around $250).
Yes, Apple needs to make a profit but this is NUTS
No one would be complaining about the price (even without the A6 chip or the Retina display) and Apple still would have made hugh profits.
Apple traditionally has a 37% profit margin for iPad base models, accordingly, the 16 GB iPad mini cost approximately $207 to make.
In a report issued in September 2012, RBC Capital Markets points out that the cost to device makers of flash memory used in tablets has declined 46% since the beginning of the year. Doug Freedman, the analyst at RBC who wrote the report, points out that while the cost of the chips has fallen, the final cost to the consumer has barely decreased at all. The report states that Apples memory costs is about 40 cents a gigabyte, so 16GB costs Apple about $6.40 far less than the $100 customers pay to upgrade.
16 GB iPad mini cost $207 to make then a 32GB iPad mini only cost Apple approximately $214 to make.
If Apple had just made the 32GB iPad Mini its base model for $329, Apple would probably have sold an additional 5 million units that will now go to the 32 GB Kindle and the 32 GB Nexus 7 (both which sell for around $250).
Yes, Apple needs to make a profit but this is NUTS