Monday, November 5, 2012

AAPL: The $329 16GB Wi-Fi iPad Mini costs $188 to...

11:47 AM The $329 16GB Wi-Fi iPad Mini costs $188 to build, according to IHS' teardown - display parts from LPL and AUO, believed to be suffering from yield issues, are estimated to cost $80. Even after factoring in non-manufacturing costs such as R&D, marketing, and shipping, this suggests Apple (AAPL +1.2%) still makes a decent profit on the Mini, which carries relatively low margins. Moreover, models with more memory carry higher margins. (weekend sales: I, II) (Read the comments on this)

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AMZN,MSFT: While IHS pegs the manufacturing cost of the...

12:04 PM While IHS pegs the manufacturing cost of the $329 iPad Mini at $188, the manufacturing cost of the $199 Kindle Fire HD (AMZN) is estimated to be just a little lower at $165. If accurate, that almost certainly means the device is sold at a loss after factoring in non-manufacturing costs. Meanwhile, Microsoft's (MSFT) $499 Surface RT is believed to have a manufacturing cost of just $271, $137 of which goes to components procured from Samsung. (more on Fire HD) (more on Surface) (Read the comments on this)

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