Apple: iPad mini profit margin is 'significantly below' corporate average
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.
Update: Added detail on Apple's 40 percent corporate gross margin for the quarter.



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