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iPad Mini Costs an Estimated $188 to Build

By - Source: AllThingsD | B 22 comments

Identities of several component suppliers revealed.

A teardown of the iPad Mini has revealed that the device, which Apple sells for $329, costs around $188 to build.

Conducted by IHS, the teardown found that the 16GB Wi-Fi model costs about $188 to build. The 32GB and 64GB models cost an additional $90 and $162 to create, respectively.

As well as the cost of the tablet's components, the teardown also revealed some of the device's component suppliers. Both LG Display and AU Optronics supplied Apple with the 7.9-inch touch-sensitive display components, costing around $80, which equates to about 43 percent of the device's total material cost.

IHS' teardown also confirms that South Korean chipmaker Hynix Semiconductor supplied the flash memory. Elsewhere, Japan's Elpida created the system memory, which costs Apple around $15.50.

Cirrus Logic provided the iPad Mini's audio chip, with STMicroelectronics manufacturing the accelerometer. However, it remains to be seen which company provides Apple with the tablet's camera.

Despite its rivalry, a recent teardown conducted by iFixit found that Samsung remains the manufacturer of Apple's A5 processor found in the iPad Mini.

 

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  • 13 Hide
    abbadon_34 , November 6, 2012 1:15 AM
    "The 32GB and 64GB models cost an additional $90 and $162 to create, respectively."

    Somethings doesn't sound right, through it is Apple turn to get screwed
  • 12 Hide
    dj1001 , November 6, 2012 12:51 AM
    the screen was half the devices cost and yet is nowhere near the quality of the competitors, kinda sounds like apple didn't get the best pricing possible.
  • 11 Hide
    esrever , November 6, 2012 12:58 AM
    The title of the article should be "Ipad mini should cost $199".
Other Comments
  • 12 Hide
    dj1001 , November 6, 2012 12:51 AM
    the screen was half the devices cost and yet is nowhere near the quality of the competitors, kinda sounds like apple didn't get the best pricing possible.
  • 11 Hide
    esrever , November 6, 2012 12:58 AM
    The title of the article should be "Ipad mini should cost $199".
  • -3 Hide
    izmanq , November 6, 2012 1:13 AM
    looking at the specs, i think it should be cheaper than 188 USD :p  but sold it a lot more than competition, just for crapple fan to waste their money :p 
  • 13 Hide
    abbadon_34 , November 6, 2012 1:15 AM
    "The 32GB and 64GB models cost an additional $90 and $162 to create, respectively."

    Somethings doesn't sound right, through it is Apple turn to get screwed
  • -3 Hide
    krowbar , November 6, 2012 1:16 AM
    Zak, what are you doing?
  • 5 Hide
    invlem , November 6, 2012 1:28 AM
    Apple has always made significant margins on their products, why should they lower the price if people are happy to buy it regardless? Just good business.
  • 4 Hide
    ta152h , November 6, 2012 1:29 AM
    This device should be selling for $269. It's good enough to command that premium over the $200 devices, but $329 is milking their fan base.

    I agree with Apple on one thing, 7" tablets are a shade too small. 7.9" is really as small as they should be. But, not for $129 more.
  • 0 Hide
    ipwn3r456 , November 6, 2012 1:44 AM
    Better price than the iPhone... the iPhone can be build around the same price as the iPad mini, but they charge it so much.
  • 4 Hide
    aggroboy , November 6, 2012 1:51 AM
    Dj1001the screen was half the devices cost and yet is nowhere near the quality of the competitors, kinda sounds like apple didn't get the best pricing possible.

    If it sells like hotcakes again, then they got the pricing right.
  • 1 Hide
    halcyon , November 6, 2012 2:35 AM
    I went my local Apple Store this evening and it was jam packed. I didn't know what all the commotion was but it was the Mini. I picked one up...and looked at it. Cute but I just wasn't impressed with the display after using Retina Displays and other great screens (like my SGS3, etc.) I did walk out with a 4th gen iPad. It is so much faster than my Asus Transformer Pad Infinity that it almost doesn't make sense. I'm returning the Asus w/in the next couple of days. Its performance leaves quite a bit to be desired and that's too bad.

    ...I think the Mini is overrated but the iPad 4 is very very fast. Web pages load instantly, always render the desktop editions (unlike my SGS3 and Infinity). What it lacks in customability it makes up for in performance.

    Don't take my word for it, go see for yourself.
  • 5 Hide
    Someone Somewhere , November 6, 2012 2:52 AM
    I find it hard to believe that a bare 32GB NAND chip costs $90, let alone $90 more than an 16GB one.

    Maybe that should have been $9. Same thing goes for the jump to 64GB
  • 1 Hide
    reprotected , November 6, 2012 3:06 AM
    invlemApple has always made significant margins on their products, why should they lower the price if people are happy to buy it regardless? Just good business.

    You still have to account for the expenses that each Apple store has, the margins other retailers make assuming it's not sold in Apple stores, distribution costs, advertisements, and dividends. That's about the same margin as the Surface.

    esreverThe title of the article should be "Ipad mini should cost $199".

    Then everyone would buy one, and no one can complain about Apple. That's no fun.

    ipwn3r456Better price than the iPhone... the iPhone can be build around the same price as the iPad mini, but they charge it so much.

    R&D and different materials used. The iPhone design from an iPhone 3GS to 4, or 4S to 5 requires a lot more brainpower than compared to an iPad 3 to an iPad mini since it's basically using the same design, only smaller much like the iPod touch.
  • -1 Hide
    ipwn3r456 , November 6, 2012 3:26 AM
    reprotectedR&D and different materials used. The iPhone design from an iPhone 3GS to 4, or 4S to 5 requires a lot more brainpower than compared to an iPad 3 to an iPad mini since it's basically using the same design, only smaller much like the iPod touch.


    Then how come the iPod Touch is much cheaper comparing to the iPhones? They are much smaller like the iPhone does.
  • 1 Hide
    christarp , November 6, 2012 3:32 AM
    Considering other costs like research, manufacturing, advertising, etc, the cost of the iPad mini is very fairly priced, and if you think otherwise you're delusional
  • -5 Hide
    dauntekong , November 6, 2012 3:59 AM
    What Apple IS NOT telling you is, it's $188 in China's Yuan. So the actual US Dollar spent to make this cheap toy is only $30.10, from US dollar to China's Yuan.
  • -1 Hide
    dauntekong , November 6, 2012 4:04 AM
    halcyonI went my local Apple Store this evening and it was jam packed. I didn't know what all the commotion was but it was the Mini. I picked one up...and looked at it. Cute but I just wasn't impressed with the display after using Retina Displays and other great screens (like my SGS3, etc.) I did walk out with a 4th gen iPad. It is so much faster than my Asus Transformer Pad Infinity that it almost doesn't make sense. I'm returning the Asus w/in the next couple of days. Its performance leaves quite a bit to be desired and that's too bad. ...I think the Mini is overrated but the iPad 4 is very very fast. Web pages load instantly, always render the desktop editions (unlike my SGS3 and Infinity). What it lacks in customability it makes up for in performance. Don't take my word for it, go see for yourself.


    I think your TF700 is bugged. Mines extremely fast and showing it off to all myiPad 3and4 buddies, they ended up buying it.

    Of course with a little help with root, O.C. no useless bloatwares, and JELLY BEAN!, it's lightning fast.
  • 2 Hide
    e56imfg , November 6, 2012 4:04 AM
    esreverThe title of the article should be "Ipad mini should cost $199".
    Except Apple needs to pay their employees and bills and such.
  • -2 Hide
    Regor245 , November 6, 2012 6:48 AM
    Every page on Latest News has "Apple" and "iDevices"..

    Is it somekind of ads or what.
  • -2 Hide
    vaughn2k , November 6, 2012 7:04 AM
    Apple: Zak, we'll not gt the profit on this for your article!!!
  • 2 Hide
    halcyon , November 6, 2012 8:17 AM
    dauntekongI think your TF700 is bugged. Mines extremely fast and showing it off to all myiPad 3and4 buddies, they ended up buying it.Of course with a little help with root, O.C. no useless bloatwares, and JELLY BEAN!, it's lightning fast.

    I do wonder. Loading web pages is very laggy for me (compared to the iPad). Its a 64GB unit and with its quad-core I expected it to be buttery smooth (yes, it does have Jelly Bean). My SGS3 is plenty quick. ...and to top it off the Infinity came with a dead pixel. For me, the iPad 4 is better ( even though it costs a little more) and now I have to go through the hassel of sending the Infinity back. See, I thought the SGS3 was a reflection of the state of Android...but its not. Say what you want about iOS but I've never had an iPhone or iPad with a dead pixel, poor performance, or any other problem. I love my SGS3 and I look forward to when I can take for granted that most Android tablets perform just as well or better. :heink: 
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