Teardown: iPad mini costs at least $188 to build

Updated

Research firm IHS reports that the iPad mini costs at least $188 to build, after its teardown of a Wi-Fi-only 16GB mini. Adding additional memory increases the cost only slightly while adding a fair amount of profit — an additional $90 in profit for the 32GB model, and $162 for the 64GB model. It’s important to bear in mind that this teardown only includes cost of materials; manufacturing, labor, research and development, and any other expenses are unaccounted for in analyzing the actual profit of the tested device, which sells for $329. Apple CFO Peter Oppenheimer notably mentioned during the company’s fourth quarter conference call that iPad mini has higher costs, and said that the gross margin is significantly below Apple’s corporate average, suggesting that manufacturing expenses are higher than usual. [via AllThingsD]

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Phil Dzikiy

Phil Dzikiy was the Editor-in-Cheif at iLounge. He mostly edited and oversaw all site editorial content, managed staff and freelancers, made the final call on product review grades and awards, and led online coverage of all Apple events and live coverage of the International CES in 2015.