$299 iPad mini Could Cost Apple Just $189.32 To Build

$299 iPad mini Could Cost Apple Just $189.32 To Build

Take the back-of-the-envelope scribblings of a tech blogger with the appropriate degree of skepticism, but according to this breakdown of what the build-of-materials (BOM) cost of the upcoming iPad mini could be, Apple will sell their 7.85-inch tablet for $299 when it debuts later this year… and still make over $100 in profit on each unit sold.

The breakdown was done by blogger Sameer Singh over at Tech-Thoughts.net, based largely upon the existing costs of components used in the iPad 2, Nexus 7 and Kindle Fire.

That’s not a bad way of doing things. Here’s the breakdown of what Singh thinks the iPad mini would cost to build:

$299 iPad mini Could Cost Apple Just $189.32 To Build

Those numbers are speculation, but if they’re correct, Apple — who won’t sell a product unless they can make a hefty profit off of it — would price the iPad mini at $299 to maintain a greather than 30% gross margin on the device.

Considering Google is selling the Nexus 7 at a loss at $199, which is a price Apple won’t emulate (and, given the iPad’s popularity, a mistake it doesn’t have to make) these numbers look good to us. Read Singh’s full post for more on how he came up with those numbers.

What do you think? Is there any chance Apple will sell the iPad mini for less than $299? Let us know in the comments.

  • Lars Pallesen

    Let’s see – the smaller iPod Touch costs $199. The larger iPad 2 costs $399.
    Yep, $299 looks like the right price for an iPad Mini.

  • mr_bee

    A $299 iPad mini won’t sell at all. So the point is moot.

  • Boris Terekidi

    $100 profit? What about shipping, retail expenses, r&d, marketing?

  • confortzero

    I would sell for 249 and kill all the other competitors in the “similar” form-factor category…
    Having more clients entering the “apple world” is a better investment for them.
    An don’t forget the Ipad mini could be the perfect portable gaming machine.

    I just wish they would upgrade to an anti-glare display for outdoor use!

  • Eric Barbosa

    please come with 3G/LTE. i’d def go down to a smaller ipad <3

  • ddevito

    Nexus 7 will wipe the floor with the iPad Mini

  • Steffen Jobbs

    Nexus 7 will wipe the floor with the iPad Mini

    The Nexus 7 is already dead in the water along with all other Android tablets. No consumer with at least half a brain and a steady job would touch a non-Apple tablet. The Android tablet market is just too fragmented and customer service almost non-existent. Google needs to stick with its search engines and leave the hardware to the hardware specialists.

  • BigLama

    the price seems about right. but i kinda wished it was at least $250.

  • Tallest_Skil

    So a product we don’t know exists using parts we don’t know exist costs an amount we can’t possibly calculate.

    That’s nice.

  • Tallest_Skil
    Nexus 7 will wipe the floor with the iPad Mini

    SHUT UP YOU WORTHLESS EXCUSE FOR A SPAMBOT.

  • ddevito
    Nexus 7 will wipe the floor with the iPad Mini

    The Nexus 7 is already dead in the water along with all other Android tablets. No consumer with at least half a brain and a steady job would touch a non-Apple tablet. The Android tablet market is just too fragmented and customer service almost non-existent. Google needs to stick with its search engines and leave the hardware to the hardware specialists.

    That’s funny, because even the most profound Apple fanboys (John Gruber, MG Siegler) have already said they love the Nexus 7.

    Typical Apple fanboy. Open your eyes and just enjoy good tech every once and a while instead of being such an arrogant human being.

  • ddevito
    Nexus 7 will wipe the floor with the iPad Mini

    SHUT UP YOU WORTHLESS EXCUSE FOR A SPAMBOT.

    It’s a great tablet – and frankly Apple missed the boat and was too arrogant not to make a 7″ version.

    Their loss. Now they’re playing catchup.

  • menithings

    I’d expect the iPad mini to start at $249 for a Wifi 8GB version, making it a no brainer to buy at just $50 more than a Kindle Fire or Nexus 7. But Apple’s real margins will come from the more expensive 16GB and 32GB versions and the 4G option. This is all speculation as we haven’t seen the device and have no idea what Apple’s metrics are.

  • SamuelBrock

    $250 minimum, but I’d say there’s a 90% chance that $299 will be the price of the iPad mini.

    The question comes to whether there’ll be a $50 increase table for buying flash storage with the new iPod Touch and iPad mini models rather than the current $100 table. The cost of flash storage seems to be going down, especially if these new lower-cost devices use older flash storage.
    The new MacBook Airs and Pros use flash storage that’s twice as fast as that of previous models while maintaining the same if not lower price-point of the Air for the 13 inch models. I think we’ll see this new flash storage in the next iPhone. With the cost of making the new flash storage seeming to match the cost of the older flash storage, Apple could easily use the more-than-adequate older storage for less in the new iPod Touch and iPad mini lines. That could be the difference in cheaper price points.

  • SamuelBrock
    Nexus 7 will wipe the floor with the iPad Mini

    The Nexus 7 is already dead in the water along with all other Android tablets. No consumer with at least half a brain and a steady job would touch a non-Apple tablet. The Android tablet market is just too fragmented and customer service almost non-existent. Google needs to stick with its search engines and leave the hardware to the hardware specialists.

    Let’s not return fanboy hate on Fandroids shall we…
    I have to point out that Google didn’t make the hardware, Asus did. I personally think if Google actually put their brilliant minds together and designed some hardware, there’d be something for Android to be proud of. Android has been helping Apple innovate at least in a few ways, competition is always good.

    I think the nexus devices are really the only thing that should be competing with Apple, rather than the phones directly from the OEMs.

    The problem with the nexus devices is that they’re more supply constrained. Google’s point with the nexus devices is to inspire OEMs to make similar products. Unfortunately, like Steve Jobs said, the Asian electronics business doesn’t understand software and they %#*k it up even when Google gives Android to them for free on a silver platter (See TouchWiz and most other Android skins). Since Matias Duarte and his work with ICS and Jelly Bean, I’ve come to respect Android a little. The rest of the OEMs are what make Android fragmented.

    Still, the Galaxy Nexus has no chance of competing with a similarly priced iPad mini in the consumer market. It’s a no-brainer for the consumer and saying that it will wipe the floor with the iPad mini is based purely in an emotional response: that of Apple hate.

  • SamuelBrock
    Nexus 7 will wipe the floor with the iPad Mini

    SHUT UP YOU WORTHLESS EXCUSE FOR A SPAMBOT.

    It’s a great tablet – and frankly Apple missed the boat and was too arrogant not to make a 7″ version.

    Their loss. Now they’re playing catchup.

    I’m pretty sure Apple was planning to make a smaller iPad before the Nexus 7. Pretty much anything that Steve Jobs disses, Apple does or makes good on. The nexus 7 is a great tablet, but the best thing about it is the performance combined with price. Apple will undoubtedly make a more affordable tablet that outdoes the Nexus 7. Apple owns the tablet market and I believe consumer choice will continue to go in Apple’s favor.

  • appleguyjoe

    I’ve seen multiple opinions on the iPad mini, check this one out, he hates the idea so much he wrote an email to Tim Cook. http://thechurchofapple.com/2012/07/08/the-ipad-mini-the-emails-to-tim-cook/

  • Aaron Cooper

    There is absolutely NO WAY it will cost them nearly this much to build. When you add in marketing expenses and other operating costs, it becomes a loser. I can assure you apple isn’t paying 48 dollars for the display for instance. We will never know the true cost I’m sure however I’d bet it’s much closer to half of this estimate if not less than half.

About the author

John BrownleeJohn Brownlee is a Contributing Editor. He has also written for Wired, Playboy, Boing Boing, Popular Mechanics, VentureBeat, and Gizmodo. He lives in Boston with his wife and two parakeets. You can follow him here on Twitter.

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