3 ms·

So going on the 3mil figure they put out, that was around $400mil profit in 3 days.

xenophanes 14y ago
That was only materials and manufacturing costs. The real margin is lower. Subtract advertising, software development, hardware design, etc
- awwstn 14y ago
  ntm shipping
  - InclinedPlane 14y ago
    Shipping is inconsequential. How many iPad mini's fit in a shipping container?
    - wmf 14y ago
      This may not matter, but Apple tends to ship each unit by air from the factory to the customer which should cost considerably more than containers. (example: http://www.cultofmac.com/192038/look-at-all-these-iphone-5s-flooding-fedexs-distribution-center-image/ http://www.cultofmac.com/192038/look-at-all-these-iphone-5s-... )
    - curt 14y ago
      A shipping container last time I looked cost $6k. Air freights really won't add that much cost to something the weight of the iPad, less than a dollar.
- brianchu 14y ago
  True. But those are fixed costs that can be spread out over millions of devices. Some estimate that 2 million iPad Mini's were sold this weekend (http://www.computerworld.com/s/article/9233257/iPad_Mini_iPad_sales_crack_3M_over_three_days http://www.computerworld.com/s/article/9233257/iPad_Mini_iPa...). Given that a couple more millions will be sold in the future, you could accommodate $10mil+ for a few bucks. Note that the 3 million figure is for both the new iPad and the iPad Mini.
lefthansolo 14y ago
it wasn't 3. that was for all ipads. 2-2.5 for ipad mini: http://news.cnet.com/8301-13579_3-57545123-37/ipad-mini-eating-into-ipad-sales/ http://news.cnet.com/8301-13579_3-57545123-37/ipad-mini-eati...
slacka 14y ago
It's actually much larger. The upgraded have much higher profit margins. >"The incremental cost of the additional NAND flash memory to Apple is only $9.60 for the additional 16GBytes of memory and $19.20 for an additional 32GBytes of memory. This means that compared to the 16GByte model, the 32GByte version of the iPad mini generates about $90 in additional profit for Apple for every unit sold. For the 64GByte model, Apple’s profit is about $171 higher than the 16GByte version."

That was only materials and manufacturing costs. The real margin is lower. Subtract advertising, software development, hardware design, etc

awwstn 14y ago
ntm shipping
- InclinedPlane 14y ago
  Shipping is inconsequential. How many iPad mini's fit in a shipping container?
  - wmf 14y ago
    This may not matter, but Apple tends to ship each unit by air from the factory to the customer which should cost considerably more than containers. (example: http://www.cultofmac.com/192038/look-at-all-these-iphone-5s-flooding-fedexs-distribution-center-image/ http://www.cultofmac.com/192038/look-at-all-these-iphone-5s-... )
  - curt 14y ago
    A shipping container last time I looked cost $6k. Air freights really won't add that much cost to something the weight of the iPad, less than a dollar.
brianchu 14y ago
True. But those are fixed costs that can be spread out over millions of devices. Some estimate that 2 million iPad Mini's were sold this weekend (http://www.computerworld.com/s/article/9233257/iPad_Mini_iPad_sales_crack_3M_over_three_days http://www.computerworld.com/s/article/9233257/iPad_Mini_iPa...). Given that a couple more millions will be sold in the future, you could accommodate $10mil+ for a few bucks. Note that the 3 million figure is for both the new iPad and the iPad Mini.

lefthansolo 14y ago

it wasn't 3. that was for all ipads. 2-2.5 for ipad mini: http://news.cnet.com/8301-13579_3-57545123-37/ipad-mini-eating-into-ipad-sales/ http://news.cnet.com/8301-13579_3-57545123-37/ipad-mini-eati...

slacka 14y ago

It's actually much larger. The upgraded have much higher profit margins. >"The incremental cost of the additional NAND flash memory to Apple is only $9.60 for the additional 16GBytes of memory and $19.20 for an additional 32GBytes of memory. This means that compared to the 16GByte model, the 32GByte version of the iPad mini generates about $90 in additional profit for Apple for every unit sold. For the 64GByte model, Apple’s profit is about $171 higher than the 16GByte version."