If Apple’s iPad Mini wants to be competitively priced, Apple may not be making a huge profit from its smaller tablet.
Mashable reports numbers from Tech-Thoughts.net, outlining the cost of each component of Apple’s much-anticiapted iPad Mini — a 7.85-inch version of its popular tablet. From memory to battery costs, it’s estimated that the iPad Mini will cost $190 to manufacture.
Mashable argues that if Apple prices its iPad Mini at $399, it would not only make about $100 in profit off each device sold, but also aggressively compete with Google’s Nexus 7 and Amazon’s Kindle Fire, which are both priced at $199.
Apple’s iPad Mini will feature a smaller, 7.85-inch non-Retina screen and feature a considerably thinner body, similar to an iPod Touch. It has been rumored that the tablet would cost between $200-$250. The iPad Mini event is scheduled for October, a month after Apple announces and releases its much-anticipated iPhone 5.
Would Apple sacrifice a $100 profit to bring the price down to $250? And how much storage would that $250 iPad Mini have? 16 GB? 8 GB?
Additionally, the price chart doesn’t reflect other costs that will come into play, including shipping costs from China, distribution, stock, retail and marketing.