Run between 40% & 55% depending on the config:
Computerworld - The new iPad Mini costs Apple just under $200 in materials and manufacturing, an analyst said today, putting an exclamation point on the company's devotion to high profit margins.
IHS iSuppli, which regularly tears apart electronic devices to estimate a "bill of materials," or BOM, pegged the lowest-priced iPad Mini's component costs at $188, with an additional $10 to account for manufacturing. The total of $198 does not include other costs, such as research and development, marketing or capital expenses.
With the 16GB iPad Mini's retail price of $329, the $131 represented a margin of nearly 40%, slightly higher than the 37% margin iSuppli estimated Apple earned on each third-generation iPad when that model debuted last March.
The more expansive configurations -- 32GB and 64GB -- add even more to Apple's bottom line, said Andrew Rassweiler, iSuppli's senior principal analyst for teardowns, in an interview today. Calling Apple's incremental cost for the additional memory "almost insignificant," he and his team put the extra income at $90 for the 32GB, $162 for the 64GB device, both above and beyond the $131 for the 16GB model.
This is what I have said from day one to people who said Mini will Cannibalize the Bigger Ipad? YOU WANT TO CANNIBALIZE THE BIGGER IPAD IF IT MAKES MORE MONEY?!?!? HELLO? If they are makign 40 % on the MIni, I hope it canniblaize each and every larger Ipad except for the ones I want to buy! Loll
It will be enlightening to see sales figures later this month and be able to see what the actual cannibalization numbers are.
At a 10-15% rate I think they are actually rescuing sales that would have gone to a competing 7".
At 50% we have an issue.
Right now estimates are all over the place.
I'd say right now professional opinions on Apple in general are all over the place.