iPad Mini Costs $329 To Buy, But Costs Apple Only $188 To Build

Summary: While Apple's pricing for the iPad mini starts at $329, the device itself only costs the Cupertino giant $188 to build. And the most storage you buy, the more profit Apple makes.

Each iPad Mini expenses The apple company less than $200 to develop, according to a teardown carried out by research firm IHS.

Apple's iPad Mini starts off at $329 for 16GB of storage space, but according to figures published by AllThingsD, the product has a invoice of components of only $188. The invoice of components only includes the parts, and not set up expenses, but as a rule set up expenses are usually only a few dollars.

Of the components, the touchscreen itself is estimated to cost around $80. This, according to IHS specialist Phil Rassweiler, is because the thinner screens are proving more difficult to manufacture. As manufacturing expenses drop -- and drop they most certainly will -- Apple's profit margin for the product will grow.

Think you're paying too much for an iPad mini? Wait until you see how much The apple company makes off greater storage space potential designs.

Apple sells the iPad Mini in 16GB, 32GB and 64GB designs, and expenses $100 per storage space push. However, the additional storage space expenses The apple company very little. In fact, the jump between 16GB and 32GB expenses about $15, while the push between 32GB and 64GB expenses about $45.

Storage is quite cheap, yet The apple company -- along with the likes of Google and Amazon -- expenses a top quality for customers wanting more storage space. Charging extra for storage space also means that companies are not so eager to make it easy to add storage space to gadgets using micro-SD cards and the like. Neither the iPad, the iPad Mini, Amazon's Amazon kindle Flame HD, nor Google Nexus 7 have the capability to take a storage space card, which forces users to either buy the greater potential gadgets at a top quality, or add storage space using an external Wi-Fi hard drive.

In comparison, IHS reports that Windows Surface product, which sells for $499 for 32GB, has a invoice or components of $271, while Amazon's Amazon kindle Flame HD product, which sells for $199, expenses just $165 to develop.
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