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  • iPad mini Teardown Reveals Device Costs $188 to Build


    As many consumers settle in with their iPad minis, research firm IHS was working hard on the device’s teardown. The firm, previously known as iSuppli, found that the Wi-Fi 16GB base model costs roughly $188 for Apple to build, which the company sells for $329. Furthermore, the 32 GB and the 64 GB models cost an additional $31 and $62 to build respectively.

    The information is interesting to hear because during its Q4 earnings, CFO Peter Oppenheimer announced that the iPad mini gross margin is “significantly below” the rest of the products in Apple’s lineup. Tim Cook did saw that “we’re unwilling to cut corners in delivering the best experienced in the world.” It is being said that Apple had to keep the price down to $329 to stay competitive with other products in the market such as Google’s Nexus 7 and Amazon’s Kindle lineup. Unfortunately for many, the Cupertino California company wasn't able to go down to a $199 price point like many had hoped. That being said, Apple did mention working on making the iPad mini production more cost-effective.

    Research firm IHS further looked at the components that are being used to build the iPad mini and found that LG Display and AU Optronics are supplying roughly $80 in display components for the 7.9 inch tablet. An iFixit teardown found that Samsung is also making display components as well along with supplying the A5 chip in the iPad mini. The firm also took a look at the Microsoft RT tablet and Kindle Fire HD, with the cost of the devices being $271 for the base 32 GB model and $165 respectively.

    The iPad mini went on sale this past Friday morning with many stores already being sold out of the tablet. Many of the early reviews have been quite positive with the exception of the display not being a Retina-capable one. Did you or someone you know pick one up?

    Source: IHS via AllThingsD
    This article was originally published in forum thread: iPad mini Teardown Reveals Device Costs $188 to Build started by Akshay Masand View original post
    Comments 35 Comments
    1. Anonymous's Avatar
      Anonymous -
      Quote Originally Posted by BenderRodriguez View Post
      if its only $188 where can i buy the parts to build it myself?
      China
    1. Glocknine's Avatar
      Glocknine -
      Quote Originally Posted by Lysias55 View Post
      Well order the parts & put it together yourself. Yeah that's what I thought. Imagine the shipping cost on each part, then how would you program it? Yeah keep quiet
      And you think apple paid the shipping cost those parts per pieces? They buy the parts in mass volume which extremely cheap as well as the shipping cost! Yeh you keep quite.
    1. gehjl's Avatar
      gehjl -
      Quote Originally Posted by kalpesh78 View Post
      Finally. Someone sensible. all others. Please go buy the Nexus 7, or kindlefire or micromax or whatever you can afford.
      Actually,I can afford all apple products if I wanted to, but why would I pay an enormous amount for average products. I built my PC for half the price of an Apple PC and has 2x the specs. My nexus 7 has better specs than an iPad mini at 2/3 the cost.

      I'm sorry I don't believe in the Apple hype. Apple is not the only manufacturer with r&d costs, advertising, personnel ,and what not. But go ahead and spend your parent's money on an under specd over priced iPad mini. (Not the only one who can assume financial position)
    1. Anonymous's Avatar
      Anonymous -
      Quote Originally Posted by gehjl View Post
      Actually,I can afford all apple products if I wanted to, but why would I pay an enormous amount for average products. I built my PC for half the price of an Apple PC and has 2x the specs. My nexus 7 has better specs than an iPad mini at 2/3 the cost.

      I'm sorry I don't believe in the Apple hype. Apple is not the only manufacturer with r&d costs, advertising, personnel ,and what not. But go ahead and spend your parent's money on an under specd over priced iPad mini. (Not the only one who can assume financial position)
      Thank you for your useful comment and implying that we are all 12-year olds that use our parents' money to buy gadgets. Stay classy.
    1. illini4232's Avatar
      illini4232 -
      Quote Originally Posted by kalpesh78 View Post
      Finally. Someone sensible. all others. Please go buy the Nexus 7, or kindlefire or micromax or whatever you can afford.
      I would do that but first off i can afford the ipad mini. Just because apple makes more off of it doesn't mean its that much more expensive. Secondly in my opinion the ipad mini is better. First off the kindle fire is not good at all. You can make an argument for the nexus 7 but i think the ipad mini is still better. i like have a rear camera on the ipad mini that the nexus doesnt have and i cant really use the front camera instead on the nexus because the quality is horrible. finally i would buy the ipad mini because i already have apps for ios and not android. if i already have apps for ios then it will probably be cheaper to just get the ipad
    1. kalpesh78's Avatar
      kalpesh78 -
      Quote Originally Posted by Anonymous View Post
      Thanks for telling ME what to buy and insulting my decisions on how I use MY money!
      Not insulting anyone's decision bro. Just that no one should be complaining about a product other than quality. apple makes good products. I used a macbook for nearly 5 years before i switched to macbook pro which still works flawlessly since 2008. apple knows that quality sells. quality comes at a price. so stop cribbing about 'MY' or 'YOUR' money and pick it up if you can. and this 188$ might just be 30$ knowing apple makes a lot of its parts in China. And remember there is still the 70% population in the world that can't afford a basic laptop, let alone a tab which is should be classified under a luxury item.
    1. gehjl's Avatar
      gehjl -
      Quote Originally Posted by Anonymous View Post
      Thank you for your useful comment and implying that we are all 12-year olds that use our parents' money to buy gadgets. Stay classy.
      You're welcome, I will stay classy.

      Now if you re-read my post, you can see that I assumed financial positions of people who buy apple products just as the poster I quoted implied I bought a Nexus 7 because I couldn't afford an iPad. I had an iPad, sold it to buy the Nexus 7.

      Not insulting anyone's decision bro. Just that no one should be complaining about a product other than quality. apple makes good products. I used a macbook for nearly 5 years before i switched to macbook pro which still works flawlessly since 2008. apple knows that quality sells. quality comes at a price. so stop cribbing about 'MY' or 'YOUR' money and pick it up if you can. and this 188$ might just be 30$ knowing apple makes a lot of its parts in China. And remember there is still the 70% population in the world that can't afford a basic laptop, let alone a tab which is should be classified under a luxury item.
      Yes, this quality that you speak of, where is it in the iPad mini? The shell? Because everything else in there is a year and half old. Apple put it out there knowing they early adopters will flock to it while they actually build what the iPad mini should have been and release it next year.
    1. kalpesh78's Avatar
      kalpesh78 -
      Quote Originally Posted by gehjl View Post
      You're welcome, I will stay classy.

      Now if you re-read my post, you can see that I assumed financial positions of people who buy apple products just as the poster I quoted implied I bought a Nexus 7 because I couldn't afford an iPad. I had an iPad, sold it to buy the Nexus 7.



      Yes, this quality that you speak of, where is it in the iPad mini? The shell? Because everything else in there is a year and half old. Apple put it out there knowing they early adopters will flock to it while they actually build what the iPad mini should have been and release it next year.
      So nobody's forcing you to buy the Ipad Mini brother. I'm skipping it. I might go for the Ipad mini 3 or 4 when they launch it. apple's initial products are usually just testing the markets. I won't fall for that.
    1. NewdestinyX's Avatar
      NewdestinyX -
      Quote Originally Posted by gehjl View Post
      Actually,I can afford all apple products if I wanted to, but why would I pay an enormous amount for average products. I built my PC for half the price of an Apple PC and has 2x the specs. My nexus 7 has better specs than an iPad mini at 2/3 the cost.

      I'm sorry I don't believe in the Apple hype. Apple is not the only manufacturer with r&d costs, advertising, personnel ,and what not. But go ahead and spend your parent's money on an under specd over priced iPad mini. (Not the only one who can assume financial position)
      You make the very large assumption that any of us would prefer to run on a Windows based machine which is inferior in so many ways - don't let me get started. We pay more for OS X based machines simply because, well, THEY'RE BETTER! There's simply no comparison between the two. In fact the best "PC" I ever ran was on my Mac pro where I was running windows XP natively. :-)

      Then, with regard to the Nexus 7, I won't even dignify an argument against you there as there is simply no equivalency comparison to make. A Nexus 7 is a toy in comparison to any iPad.

      The whole "I can get the same thing on a different platform for less money" comparisons just make me laugh. You always get what you pay for in this life. And Apple simply offers superior products in every objectively measurable way. That's why no other electronics company comes anywhere near touching their financial holdings. It's not "fanboy" hype - it's quality products. Does Apple squeeze every last possible dime of profit they can? Sure. What company doesn't. I too think the iPad mini would be more aptly priced at $299 rather than $329. No arguments there.
    1. kalpesh78's Avatar
      kalpesh78 -
      I second that, NewdestinyX.
      People have used PCs in the past and people who have moved to a mac environment won't be switching over to inferior PCs anytime sooner. (ofcourse this is also subjective since If you just want to play games you better not make the mistake of buying a Mac)
    1. NewdestinyX's Avatar
      NewdestinyX -
      Quote Originally Posted by kalpesh78 View Post
      I second that, NewdestinyX.
      People have used PCs in the past and people who have moved to a mac environment won't be switching over to inferior PCs anytime sooner. (ofcourse this is also subjective since If you just want to play games you better not make the mistake of buying a Mac)
      Yes, of course - everything is 'context' and 'degree'. No doubt. But Gehji was trying to make the point that Apple's price points are inflated for 'no better quality' product. That's one of the most common fallacies propagated on these forums. I'm tired of it.
    1. Lysias55's Avatar
      Lysias55 -
      Quote Originally Posted by Glocknine View Post
      And you think apple paid the shipping cost those parts per pieces? They buy the parts in mass volume which extremely cheap as well as the shipping cost! Yeh you keep quite.
      Good comeback, yawn
    1. gehjl's Avatar
      gehjl -
      Quote Originally Posted by NewdestinyX View Post
      You make the very large assumption that any of us would prefer to run on a Windows based machine which is inferior in so many ways - don't let me get started. We pay more for OS X based machines simply because, well, THEY'RE BETTER! There's simply no comparison between the two. In fact the best "PC" I ever ran was on my Mac pro where I was running windows XP natively. :-)

      Then, with regard to the Nexus 7, I won't even dignify an argument against you there as there is simply no equivalency comparison to make. A Nexus 7 is a toy in comparison to any iPad.

      The whole "I can get the same thing on a different platform for less money" comparisons just make me laugh. You always get what you pay for in this life. And Apple simply offers superior products in every objectively measurable way. That's why no other electronics company comes anywhere near touching their financial holdings. It's not "fanboy" hype - it's quality products. Does Apple squeeze every last possible dime of profit they can? Sure. What company doesn't. I too think the iPad mini would be more aptly priced at $299 rather than $329. No arguments there.
      What does your superiour Mac do that my PC cant? Because my PC boots up in 30 seconds and I use it to edit pictures and even worked on 1gb panoramics without a hitch.

      Real good arguement there on the Nexus 7 backed by a lot of facts, I might just sell my house and car to buy all Apple products now. I don't know how I never realized it before.

      If you live by the "you get what you pay for" in this life, you're going to overpay for a lot of items. Take Beats by Dre headphones, yeah they're decently good headphones, but are there better ones from reputable manufacturers as well for cheaper? Of course. I didn't just buy a random PC that I found for $300 dollars, I put a bit of money into it and got what I wanted. I also just didn't buy the cheapest tablet I found, I found a reputable one that does everything I need and more. So yes, I did get what I paid for. A very good PC that hasn't had a virus, slowed down, or a BSOD. A tablet that did everything my old iPad used to do, and more. Tell me how I would've benefited if I would've spent double what I did?

      You want to pay Apple prices, that's fine it all comes down to preferrence. Just stop saying Apple products are the end all of everything; Apple wasn't God's answer to this planet.
    1. kalpesh78's Avatar
      kalpesh78 -
      Quote Originally Posted by gehjl View Post
      What does your superiour Mac do that my PC cant? Because my PC boots up in 30 seconds and I use it to edit pictures and even worked on 1gb panoramics without a hitch.

      Real good arguement there on the Nexus 7 backed by a lot of facts, I might just sell my house and car to buy all Apple products now. I don't know how I never realized it before.

      If you live by the "you get what you pay for" in this life, you're going to overpay for a lot of items. Take Beats by Dre headphones, yeah they're decently good headphones, but are there better ones from reputable manufacturers as well for cheaper? Of course. I didn't just buy a random PC that I found for $300 dollars, I put a bit of money into it and got what I wanted. I also just didn't buy the cheapest tablet I found, I found a reputable one that does everything I need and more. So yes, I did get what I paid for. A very good PC that hasn't had a virus, slowed down, or a BSOD. A tablet that did everything my old iPad used to do, and more. Tell me how I would've benefited if I would've spent double what I did?

      You want to pay Apple prices, that's fine it all comes down to preferrence. Just stop saying Apple products are the end all of everything; Apple wasn't God's answer to this planet.
      You'll never own a mac. Thats all i can say. hope you enjoy your PC and Nexus7 or 10 or whatever. I'm wondering what you're doing on apple forum though. (eyes rolling)
    1. NewdestinyX's Avatar
      NewdestinyX -
      Quote Originally Posted by gehjl View Post
      You want to pay Apple prices, that's fine it all comes down to preferrence. Just stop saying Apple products are the end all of everything; Apple wasn't God's answer to this planet.
      Of course not. They just make superior products that do more (in a more intelligent way) and for that you have to pay more. It's simple.

      Now I do agree that in the final analysis it IS about preferences and what you need. If you don't want a talking personal assistant in your phone - you can 'settle' and 'pay less' for a phone without Siri. But you can't then make the argument that your chosen device "does all the same things for less". That's an intellectually dishonest argument - which is what you were making there. No you CAN'T find a device that does "everything and more and better" than Apple for less $. Is Apple, for what it does, still a little overpriced. Yeah... I admitted that before. The iPad mini should start at $299.