$254.50 for the top-of-the-line 64GB 4G LTE version. Comparing these numbers with allegedly leaked retail prices from the UK, Apple will be seeing gross profit margins of 53 percent to 135 percent, much lower than its other iDevice offerings.
The third-generation iPad, which is also considered a low profit margin product for Apple, grabs a 58 percent to 103 percent margin rate. In contrast, the iPhone 5 is estimated to bring in huge margins of 213 percent to 257 percent.
While mere speculation at this point, the iPad mini's aggressive pricing structure could stymie competitors' attempts to encroach on Apple's industry-leading mobile device marketshare. As noted in a report earlier on Saturday, rival manufacturers are taking advantage of an emerging market for 5- to 9-inch devices, a gap positioned directly between the iPhone and 9.7-inch iPad that Apple has yet to fill.
Via Gary Hayes