Tim Cook: iPad Mini Margins Are Lower Than Any Other Apple Product




During today’s conference call, Tim Cook commented on the price of the iPad mini and explained the the iPad mini has gross margins that are significantly below the corporate average. He didn’t say that Apple is selling the 7-inch tablet at a loss, but Apple definitely isn’t going to make as much profit off each iPad mini as they’re used to with other devices.

Earlier this morning a story from Digitimes claimed that the $329 price of the iPad mini is a result of mass production issues with the screen. Considering Cook’s statements on the margins of the iPad mini and Schiller’s comments that the iPad Mini is a premium product, the iPad Mini might be one of the most competitively priced Apple products we’ve seen in the last few years.


  • ScotHibb

    That’s an expected trend for the iPad Mini. First, it’s costing them a ton to get past design issues, it’s the first of its kind out there, if it truly operates as a normal sized iPad but is priced lower, it’s a no brainer that profit margins would be lower, and also look at their target audience, largely comprised of people who want an iPad but don’t want to pay for one. And lastly, look at what they have to compare its profit margins to…how much money does it take them to make a 16GB iPad into a 64GB iPad, certainly not the difference in retail costs! I paid $849 ($924 including NJ sales tax) for my iPhone 5 64GB, how HUGE is the profit margin on THAT just compared to the 16GB iPhone 5, let alone the lowest GB iPad Mini??? The iPad mini, priced for an audience that doesn’t want to pay over $199 for a 7″ tablet will make their hottest selling Mini the lowest RAM Mini, so that will compound their profit margin greatly. They should have known this when they were still talking design and pricing models.