iPad mini costs Apple $188 to make

The iPad mini has been stripped down and its parts catalogued, resulting in the news that it costs Apple just $188 to make.

Research company IHS carried out a breakdown of the new iPad mini’s components, along with an estimate of how much each part would likely have cost Apple to purchase.

The report found that the entry-level 16GB iPad mini, which retails for $329, would cost Apple just $188 to make. Meanwhile, upgrading to the 32GB model might cost you an extra $100, but it only costs Apple an extra $31 to produce.

Elsewhere, the report reveals some more interesting tidbits of information on the iPad mini. For example, while the iPad mini’s 7.9-inch display has been criticised in some parts for falling below Apple’s own Retina display standard (it has the same resolution as the non-Retina iPad 2), it remains the tablet’s most expensive component at $80.

This is because while the iPad mini’s display isn’t the sharpest, it does employ advanced GF2 technology to make itself extremely thin – hence the iPad mini’s 7.2mm thick body. However, it is proving somewhat difficult to manufacture, which is driving up the costs for Apple.

Indeed, as The Wall Street Journal points out, this costly component means that Apple will actually be making a much lower margin on the iPad mini than it usually does on devices such as the iPhone 5 and iPad 4.

The report also revealed that Apple is stepping away from Samsung for components wherever possible. In the iPad mini device featured in the teardown, only the A5 processor was sourced from Apple’s increasingly bitter rival.

Does the iPad mini represent good value for money? Let us know what you think in the comments box below.

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