iPad Mini Teardown Reveals Manufacturing Costs of $188

It looks like the iPad mini is slightly more profitable from its full sized brother the iPad 3, based from the recent estimates done by IHS iSuppli covering the BOM of the mini tablet through its meticulous teardown. The firm claims a $188 cost to build the iPad mini that barely shows considerable price ratio with its actual retail price of $329.

iPad Mini BOM

Accordingly, the 16GB Wifi iPad mini costs $188 bill of materials (BOM) plus the $10 manufacturing expense for a total of $198 from the initial estimates done by IHS iSuppli Teardown Analysis Service. The teardown also reveals such the tablet’s 7-inch touchscreen display contributes to 43-percent of the BOM total costs amounting to $80.

How Apple will sell the $329 iPad mini? Well, that’s the Cupertino-giant’s marketing prowess probably and to understand the overpriced range, they’re selling the iPad mini as a premium tablet compared to its competitors like the Amazon Kindle or Google Nexus 7 which rely on low-margin strategy which makes profit from its customers buying content and advertisers.

Source: iSuppli

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