Apple’s iPad Mini Costs Only $195 To Build

Apple’s mini iPad is about to release and experts all over the world are scratching their heads and looking into their crystal balls to view what sort of effect it will on the market.

It’s commonly believed that the mini could spell the end for the iPad 2 and that it could also eat into iPad 3 product sales. But looking a little more down to earth KGI Securities experts Ming-Chi Kuo has come up with an estimate of the iPad mini’s bill-of-materials or BOM.

Obviously, since the gadget is not out yet, the estimate is based on the price of very similar parts utilized in Apple gear, but the statistics seem realistic. Kuo thinks the basic Wi-Fi only edition with 16GB of storage will have a BOM cost of $195, while the 64GB model with LTE will come in at $254. Apple reportedly intends to price the new iPad beginning at $329, which leaves room for a 40.7 % margin.

The $195 amount is very near to the Nexus 7 and Kindle Fire BOM estimates, but they sell with small margins and they’re not meant to be cash cows for Google or Amazon.

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