Consumers are still not aware about the price range of the Apple Inc.(NASDAQ:AAPL)’s iPad Mini, but KGI Securities analyst Ming-Chi Kuo has apparently told investors that the estimated that the BOM (bill of materials) and manufacturing costs add up to $195 for the 16 GB Wi-Fi model, as reported by AppleInsider.
The screen is the single part costing the highest - $56.50 and the logic board comes at $54 for the Wi-Fi version and $80 for the 4G LTE model. Kuo’s estimation is computed according to rough figures so it might not be entirely accurate, but if it is in the price range of the actual cost, then Apple’s profits will be as good as it has been for its other devices. Kou said that margins would be between 35 % and 58 %. The present version of iPad and the iPhone 5 has generated profit margins between 37% and 51% and between 68% and 72% respectively.
Other reports have suggested that the entry-level model might come at $330 although J.P. Morgan analyst Mark Moskowitz had once said it will be around $249. However, more information will be available only after the event.