iPad Mini Component Costs Estimated to Begin at $188

FooMan2011 said:

You know, that makes me sick... With the huge amount of product they sell, does the profit margins really need to be so high? 47% profit alone on the 16gb model. And what are they doing with the billion dollars they're getting from Samsung?

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I don't see 47% profit.

It's the same Neanderthal replies every time one of these topics gets posted.

Winni said:

And your point is?

Google and Amazon sell their tablets at these prices and probably with a loss because they expect to generate revenue through their content supply chain. That's a business model that is not alien to Apple; after all, they've also sold subsidized products in the past (like the original iPhone) and many of those billions that they have in the bank were made through the iTunes store and Apple's 30% tax on everything that's being sold in it.

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Selling a carrier-subsidized product is a different thing entirely - it simply moves the cost paid to the carrier who then (more than) recovers it through service plans. So Apple still ends up with the same profit, it's just paid out differently.

Apple's "30% tax" goes to maintaining and serving electronic content. You cannot truly believe that it costs nothing to support the iTunes store? In 2011 Apple generated about $6 billion in revenue from content. It retained 30% or $1.8 billion and had at least $1.3 billion in expenses (it costs as much to market and serve free downloads as it does paid ones). So Apple generated at most $500 million in profit from the iTunes Store for the entire year of 2011. That's hardly an argument for selling iPads at cost.

lilo777 said:

Good point. But if Amazon buys LCD panel from LG that costs, say, $100 and Apple buys LCD panel from LG that costs, say, $80 we do know that Kindle has better panel, right?

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LOL

So, now YOU claim higher price means higher quality? You certainly don't say that when looking at the retail price of Apple products. Hate = blind.

xofruitcake said:

Don't you guys has VAT (valued added tax) and that is why your price is so high?

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Sry for being ignorant, never assumed you guy's didn't have it in the USA.

But what about sales tax? How much would that be?

vinnie603 said:

Sry for being ignorant, never assumed you guy's didn't have it in the USA.

But what about sales tax? How much would that be?

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It depends on the location, but I was charged 8.75% sales tax on my purchase in Los Angeles.

Talking about greed.

Hell0W0rld said:

Talking about greed.

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Yes, they should give it away for free. Damn them!