While the internet is abuzz with hype surrounding Apple’s tiny tablet, it’s not all great buzz. Much of it is negativity regarding its price point. Starting from $329, it is noticeably more costly than its Amazon and Google competition. But compared to its Apple-branded siblings, it’s placed right on the low scale of the spectrum. When you compare it to the $299 base-model iPod touch, that extra $30 gets you a whole lot more device, and the latest component cost breakdown would suggest the same.
In total, components for the iPad mini add up to a total of around $188. Now, obviously these costs don’t include Research & Development, marketing or shipping costs. So we don’t know for sure exactly what Apple makes on each device. Around $80 of the cost is the 7.9-inch display, which – although only half the resolution of Retina iPad screen – is still twice as expensive as the Retina display on the iPhone 5. These component costs were estimated by IHS, formerly known as iSuppli.
As a comparison, the iPhone 5 is estimated to cost around $199 (for the base model). SIM-free, the cost is likely to be around the $649 mark to the consumer, whereas the iPad mini sits at the $329. It doesn’t take much logic to realize how much better value for money is on the smaller iPad. Tim Cook himself stated that Apple expects profits to go down next year as the mini doesn’t make the same level of profit as any of the other iDevices.
iPhone 5 cost breakdown below: