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Teardown Reveals iPad Mini Costs About $188 to Build

The iPad mini was launched to a lukewarm reception and we're not talking about the reviews, but rather the lines we are used to seeing in front of the Apple Stores for a new product launch. As the reports state, in some areas the iPad mini sold out in just a few hours, while in other places the interest for Apple's iPad mini was very low and lines were minimal to non-existent.

iPad mini

Also standing in these lines across the globe waiting to purchase their very own iPad mini were people crazy enough to drop or dunk them into water in order to test their durability. According to these tests, the iPad mini is a real winner, as despite the serious damage it suffered upon dropping it (3 times), and after standing in water for 10 seconds, it was still functioning. This highlights the high-end finishing of the device compared to its biggest competitor, the Nexus 7.

For those willing to pay the 9 price tag (for the entry level model), and for investors looking concerned over Apple's gross margins, IHS Suppli has taken the iPad mini apart to find out how much the BOM (Bill of Materials) is.

IHS Suppli is renowned for its "teardown" analysis reports, and as usual with every Apple product now, it was time for the iPad mini to get its turn on their specialist's table. The "teardown's" verdict: the iPad mini costs about $188 to build, while it retails for $329. Increasing the internal storage with 32 GB or 64 GB, adds $31 or $62 per unit.

You may recall that there were some issues between Apple and Samsung, and The Korea Times reported that the Samsung Display will end their contract with Apple in 2013. The IHS Suppli iPad mini teardown seems to confirm that report: the display that the research company purchased, carries a display manufactured by LG Display, while Samsung continues to manufacture the A5 chip. [Via AllThingsD, Image Credit: iFixit]

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