iPad mini teardown reveals 43 per cent gross profit margin for Apple

IHS iSuppli estimates that it costs Apple $188 to make each iPad mini

A teardown of Apple's new iPad mini by IHS iSuppli reveals that each 16GB WiFi only model of the 7.9in tablets costs roughly $188 (£117) to build. This equates to a gross profit margin of approximately 43 per cent for Apple.

All Things D reports that the teardown analysis included the identities of several key suppliers of the iPad mini's components, as well as the bill of materials (BOM). The report notes that its costs Apple an additional $15.50 for the 32GB model, and $62 for 64GB.

LG Display and AU Optronics were noted in the report as the suppliers of display components, which amount to about $80, about 43 per cent of the total BOM. According to HIS analyst Andrew Rassweiler, new technology in the display is causing problems in the manufacturing process, and therefore leading to higher costs. These costs should decrease as these problems are ironed out, he said.

While Samsung continues to manufacture Apple's A5 processor, Apple has chosen to purchase other components that Samsung previously supplied from different companies. For example, IHS says that Hynix Semiconductor, a chipmaker form South Korea, made the flash memory chips in the iPad mini. Japanese company Elpida supplied the system memory. The memory chips cost around $15.50 per unit, says IHS.

See also:

iPad mini vs iPad 4 benchmark tests iPad mini vs iPad 3: Display comparison iPad mini beats Nexus and iPad 3 in drop test iPad mini display: testing books, comics, movies and games VIDEO: UK iPad mini launch, lacklustre? iPad mini 'has same 32nm A5 processor as iPad 3, 5G iPod touch'

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags iPadsmartphonestabletsAppleiPhonehardware systemsconsumer electronicslg displayAU OptronicsiSuppliHynix SemiconductorIHSIHS iSuppli

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ashleigh Allsopp

Macworld U.K.
Show Comments

Father’s Day Gift Guide

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?