iPad Mini Component Costs Estimated to Begin at $188

[Westacular]

Originally Posted by MacRumors

While the entry-level iPad mini is priced at $329 for a product that costs Apple $199 to build, the iPhone 5 costs Apple just $10 more to build but sells for $649.

To be fair, I'm sure both the assembly and R&D costs for the iPhone 5 are much higher. That said, yeah, they're still making lots more profit on the iPhone, which is priced that high simply because carriers are (begrudgingly) willing to pay $450 subsidies for the privilege of selling the iPhone.

[vinnie603]

Originally Posted by topgunn

Apple couldn't sell it for less than as they already sell a 4" tablet for and no one complains about that price.

So how do you explain the €329 price for the Ipod touch and the Ipad mini in Europe(Belgium). Really we're getting ripped off out here.
A 64GB Iphone 5 costs €919 which is approximately $1.170.
I think everyone will agree that's just insane

[carmenodie]

When that bad boy goes retina with an A6 chip all hell will break loose next year. Then, add digital wallet... OMFG!
Now, I saw the mini this weekend and the build quality is amazing. The screen crisp and the resolution does nothing to kill the experience.
It is bad a**. I have to get it!

[xanagu]

Originally Posted by mr jnvii

Just can't help shaking my head at this.

edit: I totally get why they do this. Honestly, the iPad mini doesn't really surprise me. But the iPhone 5? Wow are they selling that for a profit...Would it really kill them to ease off just a little, you know?

Why would they? with so many ***** and mongrels filling their wallet

[ncaissie]

Originally Posted by NightFlight

No, it really isn't at all.

Not with the screen that it has, and especially not when you consider the non-iOS competition.

But, but, but .. It’s thinner and lighter!

[G51989]

Originally Posted by LagunaSol

GOOGLE SELLS THE NEXUS AT COST SO THEY CAN SELL YOU TO ADVERTISERS.

Why is this fact so hard for some people to grasp? r

Because its ********? Google does not sell your info to anyone. They sell targetted ads.

Googe doesnt know you by name, your just a number to them. Advertisers do not have access to your data.

[Westside guy]

Originally Posted by G51989

Googe doesnt know you by name, your just a number to them. Advertisers do not have access to your data.

Actually with Google's acquisition of DoubleClick a few years back, one of the stated concerns was they'd likely be able to put a name to that "number" you mention.

[Aetles]

Originally Posted by Winni

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.

So far so good.

Originally Posted by Winni

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.

Here's where I think you got it wrong. First of all, AFAIK Apple did not subsidize the original iPhone, AT&T did. The ASP for the original iPhone and all others indicates that Apple has always made a lot of money from iPhone.

There was an unusual situation the first year where you could buy the iPhone subsidized in an Apple Store without signing a contract, because you could only activate it with AT&T anyway (in practice, you could jailbreak and unlock though).

Second, I don't think subsidized hardware has ever been Apples business model. In fact it's the opposite. Apple subsidized cheap software (like OS X) and services (iTunes Store was only break even in the beginning) to get people to buy the money making hardware.

Now, they do make some money on the App Store cut, and on the music business as well, but that's nothing compared to the money from hardware. Especially the iPhone with it's ASP over $600.

[topgunn]

Originally Posted by vinnie603

Really we're getting ripped off out here.

If Apple was selling food, fuel, shelter or some other necessity of life, I would agree. But they are selling gadgets that no one really needs but everyone wants. You are getting "ripped off" like everyone who has ever bought a BMW got "ripped off". By your own free will and choice.

[howyoudoin]

Originally Posted by bpcookson

If it had a retina display, I'd pay $400 for baseline.
For now, no sale.

Same boat as you, I love the iPad just the size is too much for me so I was hoping for a higher resolution screen on the mini. I'll be waiting for the next revision

[EmpireITtech]

Originally Posted by Kaibelf

Thank you for that riveting story.

He's posting his thoughts on a blog website...THAT'S WHAT THESE SITES ARE FOR! If you don't wanna hear other people's "stories", don't read a blog

[Thunderhawks]

Originally Posted by kkent25

There are A LOT more costs in bringing a product to market then just the build costs.

Always amazing how many people take iSuppli info and get excited.

No concept of all the other costs from manufacturing to transportation, distribution, administrative R&D etc.etc.

Just plain uninformed.

They don't even realize that the home button alone is $ 185 and the rest of the components only pennies.

[janderson0719]

Originally Posted by HatterZero

I bought one too, can you please tell me how I fell about it too, oh man on the internet that knows nothing about me?

I hate people who are full of it thinking EVERYONE has to have the same opinion as them.



On a serious note:

The only thing I don't like is the lack of retina display, BUT thats not enough for me to return it at this time, since I been using it to reading The Walking Dead and books while skyping with my friend from new york, but with a 60 day return policy from where I bought it I could return it for a full refund.

Do yourself a favor and return it. Your already playing with the option of being able to return, and that just seems like a bad buy, IMO.

Honestly, I really don't care how anyone justifies this iPad mini, but without retina, it is just doesnt feel like it lives up to the price. As someone pointed out, Apple doesn't change its prices and are set for future updates.

But with all that said, I still won't get one because 7.9" iPad doesn't cut it. The regular iPad is just fine on size, for me.

[lilo777]

$329 is it high or low? It's high and here is why. As has been reported today, 16GB Kindle Fire HD costs Amazon $207 to make which means that Kindle uses higher quality components than iPad Mini (costs $188). Some people may still buy iPad Mini for its perceived higher quality but the numbers do not lie. People will learn eventually that they actually get a cheaper product for a higher price and draw the conclusions.

[osofast240sx]

Originally Posted by lilo777

$329 is it high or low? It's high and here is why. As has been reported today, 16GB Kindle Fire HD costs Amazon $207 to make which means that Kindle uses higher quality components than iPad Mini (costs $188). Some people may still buy iPad Mini for its perceived higher quality but the numbers do not lie. People will learn eventually that they actually get a cheaper product for a higher price and draw the conclusions.

Not true at all. Apple buys in a far bigger volume than it's competitors. Also has more control over production of parts and assembly.

[lilo777]

Originally Posted by osofast240sx

Not true at all. Apple buys in a far bigger volume than it's competitors. Also has more control over production of parts and assembly.

When companies like IHS calculate BOMs (Bill Of Materials) they use the same prices for all components. They would not be able to do it any other way because, obviously, real contract prices are confidential. So, on the same price basis, Ipad Min is cheaper to make than Kindle Fire HD. It's a cheaper tablet.

[tumtumtum]

I was pretty excited about the iPad mini. I've bought every since iPad and iPhone since 2007. Unfortunately I've been totally spoilt by the retina display. Even my Macbook Pro has a retina display now. After holding and looking at the iPad Mini for a few seconds the display really put me off. I only started using the iPad in portrait mode when it came out with the retina display because the chunky blurry fonts put me off.

Now to be fair the iPad retina and Macbook retina both only came out this year but once you go retina it's nearly impossible to go back....

Hopefully Apple figures out how to squeeze a retina display into one of these babies next year.

[osofast240sx]

Originally Posted by lilo777

When companies like IHS calculate BOMs (Bill Of Materials) they use the same prices for all components. They would not be able to do it any other way because, obviously, real contract prices are confidential. So, on the same price basis, Ipad Min is cheaper to make than Kindle Fire HD. It's a cheaper tablet.

It's way more complicated than that. Some parts are a partnership deal ect. But since when does expensive parts make something better? Since when is being efficient not good?

[lilo777]

Originally Posted by osofast240sx

It's way more complicated than that. Some parts are a partnership deal ect. But since when does expensive parts make something better? Since when is being efficient not good?

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?

[osofast240sx]

Originally Posted by lilo777

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?

Yes but is it that much better to be a must have deal breaker. High resolution screens are nice but not a must have. It shows in sales within apple ipad2 and iPhone 3Gs sold very well this year.

[xofruitcake]

Originally Posted by vinnie603

So how do you explain the €329 price for the Ipod touch and the Ipad mini in Europe(Belgium). Really we're getting ripped off out here.
A 64GB Iphone 5 costs €919 which is approximately $1.170.
I think everyone will agree that's just insane

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

[sineplex]

iPhone 5 costs roughly $199 to make & sells @ $649.99+
iPad mini costs Apple $188 to make & sells @ 329
iPod touch 5 costs 130$ ~ $150 to make & sells @ $ 299

Why is the iphone sold for so much?

[hchung]

Originally Posted by sineplex

iPhone 5 costs roughly $199 to make & sells @ $649.99+
iPad mini costs Apple $188 to make & sells @ 329
iPod touch 5 costs 130$ ~ $150 to make & sells @ $ 299

Why is the iphone sold for so much?

Those are component costs.
That other $450 of the iPhone goes to paying salaries, building retail stores, research/development, building data centers, buying other companies, and all the other things a company has to do to stay in business.

[macs4nw]

Originally Posted by NightFlight

No, it really isn't at all. Not with the screen that it has, and especially not when you consider the non-iOS competition.

You get what you pay for. If you compare the BOM against the selling price, then by APPLE standards, yes, it IS a bargain. Also, how long will those other products last? It seems APPLE's build quality has always been excellent, and so is their warranty. That alone justifies a higher price, without even mentioning the APPLE ecosystem. APPLE has never joined the race to the bottom, and that's reflected in the price.

Originally Posted by TimUSCA

Anyone who is freaking out about not having a retina display has likely not even held an iPad mini in person. The screen is actually pretty good. No, it isn't retina, but it's certainly better than the iPad 2 screen, which really wasn't bad either. After using my mini through the weekend, I'm in love. It's fast, looks nice, and is perfect to hold. There's really nothing to hate about it, and the price is good. Is it $200? No. But Apple isn't in the business of selling your information to advertisers, so they actually have a profit to make. And if you've ever used a $200 tablet, you'd see why they're $200. You get what you pay for. And in this case, you pay a little extra for something that isn't laggy as hell with a severely limited app store.

Agreed!

Originally Posted by Surely

.....I wonder what the component cost would be with a retina display and an A6X.....

We'll probably find out, when both of the components you mentioned, have come down in price a bit, and are included in the next Mini.

[Lancer]

I agree the base should have been $299, better for marketing besides they probably make more per unit on the higher models as they should not be that much difference in the cost of the memory.