Originally Posted by ZBoater
Gross profit, maybe, but not net profit or "real" profit. Still, $400 million pays for a lot of R&D and overhead....
not quite.. The BOM analysis did not take into account of a bunch of manufacturing cost: profit to manufacturer, Parts broken in manufacturing, rework cost, warranty cost, shipping cost (from supplier to assembly plant and from assembly plant to our house. Anyone pay for an Fedex shipping lately would know it is costly), profit margin for reseller like Walmart, Target (and cost of running Apple store if they are sell through Apple). Then you throw in the marketing cost, design cost, regulatory approval (every country has a different approval process for electronics) and corporate overhead..The base Mini will hardly make any money. The high end unit will do better but they won't be at a profit level of Ipad 3 or Ipad 2, let alone Iphone 5.