Arik Hesseldahl for AllThingsD:

Previously known as iSuppli, and widely known for its so-called “teardown” analysis reports, IHS has just completed its teardown report on the Apple’s newest iteration of the tablet. The verdict: 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.

Why is Apple not selling the iPad mini at $199? This is why. That would be $11 of profit — and that’s not taking into account marketing, etc. That’s just not the game Apple plays.

  1. ramblingsbycolin reblogged this from parislemon
  2. prosperitytech reblogged this from parislemon and added:
    If they sold it at $11 of profit, who the hell would pay for iOS development?
  3. jeremyjohnstone said: That said, $299 seems like it should be in line with their usual profit margins. Curious why they chose the extra $30 making it a somewhat odd price. Maybe to keep a price premium over the iPod Touch?
  4. parislemon posted this