Apple making lower profit on base model

Apple making lower profit on base model

Low price Apple products

Recently the Apple iPad mini was released in limited places around the world, and it has been put through a battery of tests since.

In a drop test the iPad mini showed a good results compared with 3rd generation iPad and the Nexus 7.

The iPad mini in a display test, it was outshone by the rival.

Recently the 7.9-inch tab from Apple was set the teardown treatment by iFixit.

iFixit meets that the iPad mini 16GB, Wi-Fi version costed at 329 $, prices around 188$ to build.

The Wall Street Journal statements, which perceived data via teardown analyst UBM Tech Insights, now claims that the iPad mini offers lower profit margins than the 9.7-inch version (the 4th generation iPad) which was released alongside it.

The statements states that the teardown analysts anticipate that Apple gets around 35 % in gross margin for the device with Apple paying 214.75 $ for the 16GB model components. This price is a lot higher than the 188$ price anticipated by IHS iSuppli.

In contrast, Apple receives 43 %  gross margin based on component prices of 284$ for the 4th generation iPad.

The new iPad price- 499$ .

UBM TechInsights add that the iPad mini 64GB version had a benefit margin of 56 % and this is importantly higher than the lower capacity models. The statement ends by stating that the cellular models, that can be launched in the coming weeks, can have a superior profit margin as Apple adds 130$ more to its price.

The report states, “Apple relied on many of the same semiconductor manufacturers for the iPad Mini as it did in the past for other iPad models, UBM said, including Broadcom Corp.’s touchscreen controller chips, as well as one delivering Wi-Fi capabilities. Apple also used that wireless chip in the iPhone 5, UBM said.  The firm estimates Apple’s A5 processor, first unveiled in 2011 with the iPad 2, costs $27. UBM said the chip had been manufactured by Samsung Electronics Co. UBM said the processor’s cost was a hair cheaper than the iPad 4’s $30 processor and the iPad 3’s $28.50 chip.”

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