iPad Mini Component Costs Estimated to Begin at $188

AllThingsD reports on an iPad mini teardown from research firm IHS iSuppli estimating the component costs for Apple's new iPad mini at $188 for the 16 GB model.

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. Adding additional memory — the options are 32GB and 64GB — adds only incremental cost but a fair amount of profit, amounting to an additional $90 for the 32GB version and $162 per unit on the 64GB model.

The report notes that approximately 43% of the device cost is related to the display, which adopts an expensive new process known as GF2 to reduce the part's thickness, although costs are expected to come down as the production process is refined.


The bill of materials estimate provides support for Apple CEO Tim Cook's claim that the iPad mini has been priced aggressively with a profit margin significantly below the company's average. 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. The iPad mini is, however, more in line with the full-size iPad, which IHS iSuppli estimated to carry a bill of materials of $306 for the entry-level third-generation model at its launch earlier this year.

Related Roundup: iPad mini 5
Buyer's Guide: iPad Mini (Caution)

Top Rated Comments

(View all)
Avatar
104 months ago
Before everyone starts crying "So why isn't Apple selling it for $199?" remember that these are prices for the components only and do not cover costs such as research, engineering, testing, labour, warehousing, etc, etc, etc.
Score: 22 Votes (Like | Disagree)
Avatar
104 months ago
It's a bargain at $329.
Score: 18 Votes (Like | Disagree)
Avatar
104 months ago
If it had a retina display, I'd pay $400 for baseline.
For now, no sale.

edit: Yes, I went and held it. Hogged one at the Apple store for a good 10 minutes.
Score: 17 Votes (Like | Disagree)
Avatar
104 months ago

It's a bargain at $329.


Or a rip-off.
Score: 14 Votes (Like | Disagree)
Avatar
104 months ago
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.
Score: 11 Votes (Like | Disagree)
Avatar
104 months ago
329,- is a strange price

I'm sure Steve would have priced it 299,-. Just for the shock-and-awe feeling and a more attractive communication.
Score: 11 Votes (Like | Disagree)

Top Stories

New Photos Offer Better Look at iPhone 12 Color Options

Tuesday October 20, 2020 2:34 am PDT by
As we wait for the iPhone 12 review embargo to lift later today, more pictures are circulating of the devices in real-world lighting conditions, providing a better look at the different colors available. Leaker DuanRui has shared images on Twitter of the iPhone 12 in white, black, blue, green, and (PRODUCT)RED. The black and white colors are similar to the iPhone 11 colors, but the other...

iPhone 12 Pro in Graphite and iPhone 12 in Blue Shown Off in Unboxing Videos

Monday October 19, 2020 8:20 am PDT by
While the iPhone 12 Pro does not launch until Friday, we now have an early unboxing video of the device courtesy of Twitter account DuanRui, providing a closer look at the shiny new flat-edge design and sleek Graphite color option. Ben Geskin re-uploaded the unboxing video to YouTube, which we've embedded below: Geskin has also uploaded an unboxing video of the iPhone 12 in Blue: ...

Apple Releases iPadOS and iOS 14.1 With Multiple Bug Fixes Ahead of iPhone 12 Launch

Tuesday October 20, 2020 10:06 am PDT by
Apple today released iOS and iPadOS 14.1, the first major updates to the iOS and iPadOS 14 operating system updates that were released in September. iOS and iPadOS 14.1 come a week after Apple released the golden master versions of the updates to developers. The iOS 14.1 update can be downloaded for free and it is available on all eligible devices over-the-air in the Settings app. To access...

Watch: iPhone 12 and iPhone 12 Pro Unboxing Videos and First Impressions

Tuesday October 20, 2020 6:05 am PDT by
Apple's embargo has lifted for iPhone 12 and iPhone 12 Pro reviews. In addition to our detailed review roundups for each device, we've rounded up over a dozen unboxing videos and first impressions below. iPhone 12 in Blue on left and iPhone 12 Pro in Pacific Blue on right via Engadget Key new features of the iPhone 12 and iPhone 12 Pro include a flat-edge design, 5G support, a much faster A14 ...

Gold Version of iPhone 12 Pro Apparently Has a More Fingerprint Resistant Stainless Steel Frame

Tuesday October 20, 2020 11:56 am PDT by
iPhone 12 Pro reviews hit the web today, and one of the more interesting tidbits came from TechCrunch's Matthew Panzarino, who revealed that the Gold version of the device apparently has a more fingerprint resistant coating applied to the stainless steel frame. From his review:Most of the iPhone 12 Pro finishes still use a physical vapor deposition process for edge coating. But the new gold...

Photographer Austin Mann Tests the iPhone 12 Pro's Camera

Wednesday October 21, 2020 4:14 am PDT by
Travel photographer Austin Mann usually performs an in-depth review of new iPhone models to test their camera performance in real-world scenarios. To test Apple's new iPhone 12 Pro, Mann traveled to Glacier National Park, Montana. Mann focused on some of the biggest camera upgrades with the iPhone 12 Pro, including the upgraded Wide lens, Ultra Wide Night mode, and LiDAR autofocus, across a...

iPhone 12 Pro Max Has Smaller 3,687 mAh Battery According to Regulatory Filing

Tuesday October 20, 2020 8:48 pm PDT by
Apple's new iPhone 12 Pro Max is equipped with a 3,687 mAh battery, which is around 7% less capacity than the 3,969 mAh battery in the iPhone 11 Pro Max, according to a regulatory filing published by TENAA, the Chinese equivalent of the FCC. The regulatory filing, spotted by MacRumors, also lists the iPhone 12 Pro Max with 6GB of RAM as seen in benchmark results last week. Apple has filed ...

5G Drains iPhone 12 Battery 20% Faster Than 4G in Benchmark

Wednesday October 21, 2020 3:17 am PDT by
After the first reviews for the iPhone 12 and iPhone 12 Pro emerged yesterday, a new report by Tom's Guide reveals the extent of battery life reductions when using 5G. The report outlines a test wherein the iPhone surfs the web continuously at 150 nits of screen brightness, launching a new site every 30 seconds until the battery drains. Interestingly, the test was run on an iPhone 12 and...

Hands-On With Apple's iPhone 12 and 12 Pro MagSafe Cases

Tuesday October 20, 2020 1:33 pm PDT by
Apple's iPhone 12 and 12 Pro are launching this Friday, and ahead of that release date, Apple is shipping out various accessories like the MagSafe charger and MagSafe cases. Yesterday we took a look at the MagSafe charger, and today our MagSafe case came in the mail, so we thought we'd take another look at the charger to see how it works with the case and just how strong the case magnets are. S ...

Reliable Leaker Suggests AirTags 'Coming Soon' in Two Different Sizes

Tuesday October 20, 2020 1:53 am PDT by
Apple's rumored AirTags Bluetooth tracking devices could launch imminently and will be available in two size options, based on new tweets from cryptic-but-reliable leaker L0vetodream. In typical enigmatic style, the leaker first tweeted this morning that a "big one" and a "small one" are "coming soon," but withheld what they were referring to. However that was followed an hour later with the ...