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.