So when Apple announced the iPad mini, you guys would have been pretty excited to finally see the smaller tablet Apple had been cooking for us. But when Apple announced the price of the iPad mini it would have probably shocked you. The starting price of the iPad mini is $329, which is far more than any of its competitors. The reason? Well find it out below.
iPad Mini Over Priced
The iPad mini which according to most of you is simply over priced. The reason? Well it seems the advanced touch screen of the iPad mini has low yield rates. Which in other words means that its pretty expensive for Apple to make.
DigiTimes which in the past has been quite accurate mentions the low yield rate of the touch screen being the reason of why iPad mini is so expensive.
The sources said 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.
The report further goes on to mention that the touch screen of the iPad mini cost only $5 less than those for the iPad 3/4. Which would certainly make sense to pricing a smaller tablet this high. So far an official response from Apple only mentions that people will be willing to pay more for a better quality product.
Apple today in its earning call mentioned that the profit margin for the iPad mini is well below the “Industry average” which would again further justify the reason for the iPad mini being so expensive.
The profit margin might be below the industry average but Apple should also remember that Amazon is selling the Kindle Fire at a loss! Yes, they are actually selling the devices at a loss, only to gain market share.
Well does this justify the iPad mini being over priced?