According to IHS (previously known as iSuppli), via All Things D, the 16GB Wi-Fi iPad mini costs Apple $188 to build. This leaves them with around $141 to cover labour, marketing and distrubution costs (as well as a little profit, we imagine). The 32GB and 64GB are a little more pricey, costing $31 and $62 extra to build, respectively.
The teardown also revealed that the iPad mini’s display was being supplied by a number of electronics manufacturers including LG Electronics, AU Optromics and Samsung, who are also producing the iPad mini’s A5 processor – contrary to reports that Cupertino were cutting ties with the South Korean company.
The iPad mini might not be as competitively priced as other small tablets, such as the Kindle Fire HD (which costs around $165 to build, according to IHS), but with Tim Cook stating that its gross margin is, “significantly below” that of other Apple products, it’s not hard to see how Apple came to the price they did.
IHS isn’t the only company to be giving the iPad mini the teardown treatment, either. iFixit’s teardown revealed some of the other parts and components that go into Apple’s 7.9-inch tablet as well as giving hardy, warranty-voiding souls an idea of just how easy it would be to repair the device.
Don’t forget – our special iPad mini launch edition is on sale on Newsstand now (it’ll be out in the shops later on in the month).