Is a $329 iPad mini Good Business?
['Joe Fabisevich']
Fabisevi.ch
I posed a question earlier today about Apple’s new iPad mini pricing. The 10% comes from the fact that for every person why buys it at 329 , A p p l e i s m a k i n g a n e x t r a 329, Apple is making an extra 329,Appleismakinganextra30 in revenue. Assuming Apple’s margins are similar to their usual 30-35%, and [I’m really assuming] that the cost is around 210 − 210- 210−220 to produce the low end model, then they would raise their margins from the 30% or so, to 35-ish% by adding that $30 in profit.