Unlike its rivals that are selling their tablets at or near cost, Apple is reportedly selling its iPad mini for a lot more than it costs to make.
The material for Apple's new line of 7.9-inch screen tablets adds up to $188, IHS, an analytics firm, estimates. When you add in a manufacturing expense, the total comes to $198.
That's a margin of $141 between the estimated cost and the $329 price tag on the 16 GB iPad mini. That margin increases as storage goes up. Apple sells 32 GB models for $429 and 64 GB models for $529, even though the cost of material only increases slightly, IHS estimates.
But while Apple is making a vast profit on each iPad mini unit sold, Amazon and Google are breaking even or barely pulling a profit.