Mac mini teardown suggests unusually slim profit margins for Apple

Mac mini - More Mac per square inch“Market research firm iSuppli, which has made a name for itself in recent years by tearing apart the some of the hottest electronics products on the market and then performing an analysis of their component makeup, says the new entry-level $599 Mac mini carries a bill-of-materials of $376.20, which increases to $387.14 when manufacturing costs are added,” Slash Lane reports for AppleInsider.

“Assuming the study is accurate, that leaves Apple with just over $200 in margin potential before factoring in costs associated with hardware engineering, royalties and licensing fees, software development, software loading and test, shipping, logistics marketing and other supply channel fees,” Lane reports.

“iSuppli also notes that in spite of the mini’s use of some mobile components, and the latest energy-saving silicon process geometries, it sports a great deal of processing power. As a result, the diminutive desktop employs a 110-watt external power supply, representing a higher power usage than the first-generation model, which employed an 85-watt power supply,” Lane reports.

Full article, with a full cost analysis of the $599 Mac mini, here.

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