Question

An article on slashgear.com reported on the findings of the marketing research firm HIS iSuppli in its investigation of the cost of the components used to produce the 16GB Apple iPad mini. The firm found that this iPad mini costs $188 to produce, 43% less than its retail price of $329.o Does this mean that Apple is making a profit of $141 per iPad mini?

Answer 1

Answer:

NO.

Explanation:

188 is the cost of the components for the iPad mini. It is not taking account for the overhead cost, the IOS system cost assembly cost and labor cost. $188 would be the cost for the raw materials only. so Apple is not having a $141 gross profit per iPad

There are most cost involved