During Apple's Q4 2012 earnings call, Chief Financial Officer Peter Oppenheimer has filled in a bit more of the iPad mini pricing puzzle. Despite the tablet's $329 starting price — 60 percent more than competition like the Nexus 7 — the iPad mini's gross profit margin is "significantly below" the company's average, which was at 40 percent for the quarter. Of course, Apple isn't one to detail its margins product-to-product, but thanks to Oppenheimer's remarks we know its margin on the iPad mini is less than 40 percent. We do know that the $199, 7-inch Nexus 7 is sold at cost, and considering the iPad mini's superior-feeling build quality and 7.9-inch screen the considerably higher cost of the mini can be partly accounted for.
Apple: iPad mini profit margin is ‘significantly below’ corporate average
Update: Added detail on Apple’s 40 percent corporate gross margin for the quarter.
Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.
Most Popular
Most Popular
- Midjourney goes from generating cat images to full-body ultrasound scans
- Apple’s weird anti-nausea dots cured my car sickness
- Tim Cook says RAM expenses are ‘unsustainable’ and Apple is going to raise prices
- This Ghost in the Shell keyboard makes me want to activate the hundred spidery robot fingers inside my regular fingers
- Amazon employees say they’re facing termination for backing data center limits
