A $299 iPad Mini would make Apple a profit of just under $100 on each unit, according to a new estimate on the tablet’s build-of-materials (BOM).
The breakdown was put together by Tech-Thoughts.net blogger Sameer Singh, who assembled the below list based on the cost of components used for the iPad 2, Nexus 7 and Kindle Fire.
The component list shows that the display could cost $48.54 and the touchscreen $32.37, prices which would go along with the line of thinking that the 7.85-inch tablet will come without a Retina Display. Other notable expenses go on "mechanical/electro mechanical" ($31.31) and the processor ($13.50), which is likely to be the same A5 processor used for the iPad 2 and iPhone 4S.
TabTimes has spoken to a number of analysts in recent weeks on the potential price of the iPad Mini, and the consensus seems to be that the tablet will arrive for somewhere between $279 and $329.
These prices would certainly allow Apple to compete with Google’s Nexus 7 and Amazon’s Kindle Fire, all while bringing in a healthy margin.