Arik Hesseldahl, writing for AllThingsD:
“Previously known as iSuppli, and widely known for its so-called ‘teardown’ analysis reports, IHS has just completed its teardown report on the Apple’s newest iteration of the tablet. The verdict: The base model, a Wi-Fi-only 16 gigabyte iPad mini, which sells for a starting retail price of $329, costs about $188 to build.”
That’s about a 43% profit margin, about par for Apple computing products.
The company was criticized for pricing the new iPad mini at over $100 above competing 7-inch tablets, which misses the point. Apple doesn’t compete in the usual race-to-the-bottom. They sell to people willing to pay for a finer product. It appears to be working.