Published in Notebooks
Teardown puts iPad mini BOM at $188
Not much of a margin by Apple’s standards
According to an IHS teardown, Apple’s entry level iPad mini costs $188 to build. This easily makes it the cheapest iPad ever and it’s BOM is close to what we’ve come to expect from iPhones.
The priciest component is the ultrathin, but low-res screen, with an estimated cost of $80. Apple still charges $100 for a storage bump, but an additional 16GB of NAND cost about $15.
Apple’s asking price for the wifi-only iPad mini 16GB is $329, so we are still talking about quite a margin. For a bit of perspective, the Kindle Fire costs $165 to build, yet it retails for $199.
Apple can afford to charge a premium and according to some estimates, the outfit has already managed to sell upwards of two million minis over the weekend.