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There's simply no way that Apple will do this. The current iPad sells for $499 and costs Apple about $300 to make. This is inline with Apple's (much higher tha
by JohnTHaller 15y ago
There's simply no way that Apple will do this. The current iPad sells for $499 and costs Apple about $300 to make. This is inline with Apple's (much higher than industry average) typical markup on their wares. The $200 Kindle Fire, by comparison, costs about $202 to make. So, Apple wouldn't be able to produce an iPad Mini for $200-250 and still be able to make its high Apple markup. Especially since its screen would likely be higher quality (and more expensive).
Unless, of course, Apple switches to Amazon's 'razor and blades' model and starts selling on price. It could do this due to its lock-in on apps, movies and books (none of which can be used on another company's devices). But I think that is highly unlikely as they'd be losing revenue overall by cutting down on sales of the regular iPad. Far more likely is a $350 price point so Apple can include their markup.
- pan69 15y agoJust out of curiosity, is that $300 for just the components or does that cost include everything else as well such as assembly, research, design, marketing, etc. etc?
- JohnTHaller 15y agoIt's an estimate based on components and assembly (assuming assembly in one of the foxconn factories). No r/d is factored into the cost, it's just the cost of the thing itself to be made.