With the recent release of the iPad mini, one of the largest complaints against the device has been the tablet’s price. The $320 price tag the mini carries in comparison to other smaller sized tablets is a major issue for many consumers. The research firm IHS has recently torn open and analyzed the parts inside of the new iPad mini and has concluded that it would cost at least $188 to produce each one, explaining the device’s higher cost.
Apple was clearly unable to go with the $200 dollar price point many consumers wanted as the profits would be negligible for the company that seeks big margins on all products sold. IHS also discovered that 43 percent of the material cost for the iPad mini comes from the device’s screen. The screen uses a new technology designed to help make a thinner display.
The cost to produce the device would increase even more with the inclusion of 4G; however, it hasn’t been analyzed yet, so no one is sure by exactly how much the cost would go up.
With its significantly higher cost and mixed reviews, it will be hard for the mini to compete with competitors such as the Kindle Fire HD.
While I’m skeptical of the iPad mini in its current state, if the next version of the device can return next year with a better screen and cheaper price, it could easily dominate the small tablet market. Given that reports today have the iPad mini being sold out, it may already be on its way to dominating the small tablet market.
Image Credit: Wired