Why The iPad Mini Is More Expensive Than $299



Apple fans have been disappointed that the iPad mini cost $329, while other 7-inch tablets cost significantly less. Phil Schiller defended the price saying consumers will pay for a quality product. He’s right. Apple’s going to sell a gazillion iPad minis, but the reason for it’s higher price tag might have a lot more to do with problems manufacturing the touch screen.

According to Digitimes, Apple’s $329 price tag for the iPad mini is largely due to low yield rates for the device’s GF2 (DITO film) touch screen technology.

“Sources said the DITO film sensor is having mass production issues, which has been a big contributor to why the device is approximately 40-50% more expensive compared to other 7-inch tablets that have OGS or G/G structures.”

Digitimes does have a questionable track record with Apple rumors so this might not be the real reason why the iPad mini costs $329. However, according to Digitimes’ sources, the GF2 screens of the iPad mini are only $5 cheaper that those on the 9.7-inch model iPads. The lower margins on the iPad mini could explain why Apple was forced to price the iPad mini a bit higher than expected.

In their report Digitimes also claims that the iPad 2 will be on sale till at least the end of the first quarter of 2013, thanks to the device maintaining steady sales.

Source: Digitimes

  • viveksrn

    This reasoning sounds a little dumb. The pricing that Apple adheres to would not depend on screen yields. By that logic, The iPhone 5 should have been twice as expensive, they seem to have supply constraints with that one as well.

  • bdkennedy

    If the iPad Mini had cost $299, then where’s the incentive to buy an iPod Touch?

  • Whodakat

    I think they priced it this way so they could at least try to keep up with demand. Can you imagine how many of these they would have sold at $199? Or even $249? They would never have caught up by Christmas. They’d be backlogged until the iPad mini 2!

  • prodge6671

    Who the hell would buy an iPod Touch if the iPad mini was $299. I believe that is the reason that it is $329. To have some separation from a 4″ device and a 7.9″ device. If the mini was $299 then they would lose so many iPod Touch sales.

  • technochick

    I stopped at Digitimes. They are clueless about everything tech, their ‘sources’ are bunk.

    If Digitimes says it, the opposite is true.

  • Adrayven

    If the iPad Mini had cost $299, then where’s the incentive to buy an iPod Touch?

    Ahhh, smaller screen? not everyone wants that large 8″ screen.. many may actually want a device that fits in the pocket and use it more for music and apps than for reading..

    Pricing is not the reason a person picks an iPad or iPod.. it’s their intended use / needs first, then what they can get for their money second.

  • carlp

    “They’d be backlogged until the iPad mini 2!”

    Awesome that’s only 11 months to go. I better get in line now.

  • Mystakill

    Greed. Duh. Apple’s excessive profit margins are the reason they have $120+ billion in the bank now…