Soon after Apple’s announcement for another mega event, it seems quite obvious that the upcoming week is going to be dedicated to the smaller iPad, iPad mini. Rumors for its design and features are quite common on different tech sites but an even more fascinating aspect of this mini iPad is its pricing. Although the pricing has also been leaked but more analysis are done of the price and the conclusion made says that Apple is earning 40% gross margin on iPad mini, each produced. If you want to know how then here are the details for you.

KGI Securities analyst Ming-Chi Kuo has an early look at the likely bill-of-materials (BOM) for the iPad mini, while the pricing was also leaked. Thus through this it made a new conclusion about the profit the fruit company will be earning.

Gross Margin On iPadMini

Starting from a 16GB Wi-Fi, Kuo says that the BOM and manufacturing costs of this iPad mini will start from $195 and will range up to $254.50 for the 64GB, LTE + Wi-Fi edition. If you are wondering as how this analysis has been made, then it is to tell you that, this deduction has been made on the basis of educated guesses, existing price and component lists from other Apple devices, and reported suppliers of parts for this new tablet. The prices were then compared with the expected pricing of the baby iPad. From all this working the final point that came to surface says that Apple will be enjoying a gross margin of 40.73 percent at the low end, and 61.38 percent for the fully loaded iPad mini.

If we compare the gross margin of iPad mini with other products then we find that Apple took a gross margin of 68 percent for entry-level devices, and  72 percent for its most expensive model. While for the recent iPad, it carried a 36.66 percent gross margin for the 16GB Wi-Fi model, and a 50.70 percent margin for top-end devices.

One thing that should be taken into account is that the pricing of iPad mini is much more impressive when compared with its competitors, like the Nexus 7 and Amazon Kindle Fire.

What do think about Apple’s gross margin over iPad mini?

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