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Showing posts with label Smsartphones. Show all posts
Showing posts with label Smsartphones. Show all posts

November 4, 2012

The Logic of Apple's iPad Mini Pricing

iPad Mini’s $329 starting price tag, which is a full $130 higher than the direct competition, was a disappointment for Appleas well as many consumers who hoped Apple would price the 7.9-inch 16GB gadget somewhere between $249 and $299 to stay competitive.


In a note to investors picked up by AppleInsider, KGI Securities analyst Ming-Chi Kuo estimated that the BOM (bill of materials) and manufacturing costs come to about $195 for the 16GB Wi-Fi model.The priciest single part is the screen at $56.50. The logic board costs a fair amount -- $54 for the Wi-Fi version and $80 for the 4G LTE model, AppleInsider noted.

The $329 price tag for Apple’s iPad Mini is largely due to low yield rates for the product’s GF2 (DITO film) touch screen technology,” DigiTimes says in its report, adding “the DITO film sensor is having mass production issues, which has been a big contributor to why the device is approximately 40-50% more expensive compared to other 7-inch tablets that have OGS or G/G structures.