iPad Mini Teardown Analysis Reveals The Device Costs Around $188 To Build

Popular teardown analysis website iSuppli has just completed its report regarding the Apple iPad Mini teardown and according to them, the base model for Apple’s smaller tablet i.e a Wi-Fi-only 16 gigabyte iPad Mini that retails for $329, costs at least $188 to build (via AllThingsD).

Screen Shot 2012 11 04 at 9 04 28 PM

The reports claims that 32GB or 64GB additional memory adds only incremental cost i.e $31 for 32GB version and $62 for 64GB, thus adding a fair amount of profit. The teardown also revealed the identities of several key suppliers on the latest device, for instance LG Display and AU Optronics were found to have supplied the display components, while Samsung continued its role as the manufacturer of Apple’s A5 processor.

However, wherever Apple has a choice to buy components from other suppliers not named Samsung, it appears to be doing just that. Memory chips and displays, a portion of which have, in previous generations of iOS devices, been purchased from Samsung, appear to be coming from other players. This also appeared to be true of the iPhone 5, released earlier this year.

The sample iPad mini examined by IHS contained flash memory chips from Hynix Semiconductor, another South Korean chipmaker, and Japan’s Elpida supplied the system memory. Memory chips amounted to $15.50 of the materials cost of the iPad mini, IHS says.

As always, the identity of the camera suppliers could not be determined.

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  • Token

    175% profit margin ftw.

  • Cordova Bay

    gross margin is 43%. Mark up is 1.75. These are very aggressive numbers and well below what Apple is used to getting. Apple and its investors expect to see better than 40% net margin. This product is well short of that.

  • Cordova Bay

    My mistake. I just looked at the SEC filing by Apple for fiscal 2012 and for the year and their gross margin was 40% so that is in keeping with what we see for this new product.