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Comment by mmanfrin | Hacker News Reader

So going on the 3mil figure they put out, that was around $400mil profit in 3 days.

That was only materials and manufacturing costs. The real margin is lower. Subtract advertising, software development, hardware design, etc

True. But those are fixed costs that can be spread out over millions of devices. Some estimate that 2 million iPad Mini's were sold this weekend (http://www.computerworld.com/s/article/9233257/iPad_Mini_iPa...). Given that a couple more millions will be sold in the future, you could accommodate $10mil+ for a few bucks.

Note that the 3 million figure is for both the new iPad and the iPad Mini.

ntm shipping

Shipping is inconsequential. How many iPad mini's fit in a shipping container?

This may not matter, but Apple tends to ship each unit by air from the factory to the customer which should cost considerably more than containers. (example: http://www.cultofmac.com/192038/look-at-all-these-iphone-5s-... )

A shipping container last time I looked cost $6k. Air freights really won't add that much cost to something the weight of the iPad, less than a dollar.

It's actually much larger. The upgraded have much higher profit margins.

>"The incremental cost of the additional NAND flash memory to Apple is only $9.60 for the additional 16GBytes of memory and $19.20 for an additional 32GBytes of memory. This means that compared to the 16GByte model, the 32GByte version of the iPad mini generates about $90 in additional profit for Apple for every unit sold. For the 64GByte model, Apple’s profit is about $171 higher than the 16GByte version."

it wasn't 3. that was for all ipads. 2-2.5 for ipad mini: http://news.cnet.com/8301-13579_3-57545123-37/ipad-mini-eati...

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