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iPad mini only costs $188 to build, gives Apple 43% gross margin

Published Nov 5th, 2012 12:11PM EST
Apple iPad mini teardown

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People arguing that the iPad mini is overpriced at $329 got some fresh ammo this week as IHS iSuppli analysts estimated that the new tablet only costs Apple (AAPL) $188 to build per unit. According to AllThingsD, iSuppli conducted a teardown of the 16GB iPad mini and added up its bill of materials to $188 per unit, which yields a 43% gross margin for each tablet sold. For comparison, consider that iSuppli found that Google’s (GOOG) $200 8GB Nexus 7 tablet cost $151.75 to build per unit, thus giving Google a gross margin of 24% for each tablet sold.

Brad Reed
Brad Reed Staff Writer

Brad Reed has written about technology for over eight years at BGR.com and Network World. Prior to that, he wrote freelance stories for political publications such as AlterNet and the American Prospect. He has a Master's Degree in Business and Economics Journalism from Boston University.

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