Apple’s just recently released iPad tiny is already reported to be a great seller for the company, with three million units of the iPad tiny as well as iPad 4 declared to have been shipped in just three days of sales. in spite of so-called professionals deriding the lack of a Retina display, we didn’t truly expect anything different, did we?

As is always the situation when Apple introduces a new product, business have been queuing as much as rip the iPad tiny apart with one sole goal – to work out just exactly how much the bit tablet costs to put together. The result, at least as far as IHS iSuppli believe, is that the low-end 16GB Wi-Fi iPad tiny costs less than $200 to build.

Coming in at $188, the least expensive iPad evaluates in at $329 at the money register, which fits in with Tim Cook’s insurance claim that the iPad tiny is aggressively priced in that the revenue declared by Apple is lower, portion wise, than its other products. The iphone 5, for example, costs just $10 a lot more to make however costs a whopping $649 in Apple Stores.

So where does all the money go? According to IHS iSuppli, the a large chunk of that $188 goes towards that new 7.9-inch screen – 43% to be exact. The reason for that is likely to be the new production technique used, dubbed GF2, which reduces the thickness of the screen as well as as a consequence, the general product. As the process is perfected though, it is expected that the costs of producing the screens will fall.

As far as storage choices are concerned, the choices of 32GB as well as 64GB don’t expense Apple that much thinking about the revenue the business declares on them.

The base model, a Wi-Fi-only 16 gigabyte iPad mini, which offers for a starting retail cost of $329, costs about $188 to build. adding extra memory — the choices are 32GB as well as 64GB — adds only incremental expense however a fair amount of profit, amounting to an extra $90 for the 32GB version as well as $162 per system on the 64GB model.

With Apple making less revenue than we would maybe expect on the iPad mini, we have to question why it’s right here at all. Is Apple truly concerned about the proliferation of little Android tablets, or does it just see any type of revenue as great revenue at this point?

(via AllThingsD)

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