Apple’s iPad mini’s $329 price tag due to low touch screen yields, say sources

“The US$329 price tag for Apple’s iPad mini is largely due to low yield rates for the device’s GF2 (DITO film) touch screen technology, according to industry sources,” Siu Han and Alex Wolfgram report for DigiTimes.

“The sources said the DITO film sensor is having mass production issues,” Han and Wolfgram report, “which has been a big contributor to why the device is approximately 40-50% more expensive compared to other 7-inch tablets that have OGS or G/G structures.”

Full article here.

[Thanks to MacDailyNews Readers “Fred Mertz” and “Rainy Day” for the heads up.]

Related article:
If you want an iPad mini, order it quickly: Limited supply due to touchscreen yield issues – October 24, 2012

21 Comments

      1. The A5 was introduced this year in the iPad 3 rev. Apple is introducing the A6 for the newest iPad and iPhone 5. The iPad mini is smaller, and doesn’t need as much to drive the images to the screen. Plus, Apple needs to differentiate the iPad from the iPad mini, and the faster processor in the iPad helps to do that.

  1. Isn’t it funny that an article with this sort of information is posted within a half hour of the earnings call?? AAPL taking it in the shorts already, damn near $10 now.

    1. Absolutely no reason for the stock to be dropping except for the manipulators – Apple is making money hand over fist – way more profitable than probably any other company..

      1. How do you come to this conclusion? Yield from production is a direct contributor to component cost, which are critical to the price of a device.

        Whether that is really the issue here, I don’t know, but you cannot exclude the explanation as unreasonable.

    1. Apple needs to sell all devices with the current processors.

      Provide current cpus and older cpus as an optional lower price point – not as they do now. Scattered. iPhone gets the Newest. Just offer at different times of the year. Or complete product line updates. Getting tired of it Apple.

  2. The $329 price allows Apple to make better margins on a device for which they will have trouble meeting the demand, and allows them to maintain a decent margin when the Retina iPad mini is introduced in 2013, and will allow them to drop the price of the current mini to $229 – $249. Very smart in my opinion.

  3. It doesn’t matter whether the display rumors are true or not. Apple’s share price will still end up below $600. The hedge funds have to cover their losses and Apple makes an excellent sacrificial lamb to feast on.

  4. FUD

    Being in manufacturing I know this is B.S. If there is a yield problem any manufacturer will eat it until they get it right. If it turns out unsolvable the product gets re-designed.

    I personally think the sweat spot would have been $249. $2B would have subsidized production of 20M units, more than enough time to fix or re-design.

    If, Apple thought they needed to price it lower they would have eaten the yield. Obviously, Apple is in the business to make money, and build quality products, not buy market share. They priced the iPad mini accordingly.

    1. Agreed. Apple set the price WAY before the yield rates would have been known. Yield rates have nothing to do with the iPad mini’s price, just availability.

      What these analysts keep forgetting is that Amazon and Google have no interest in making money with their tablets; they make money because (hopefully) the more users, the more their other services get used.

      Apple makes money on hardware and will not create a loss leader type product just to get people into the Apple ecosystem. Apple actually works in the opposite direction — it’s viewed as a premium product, the object of desire, so people are willing to spend more to get one. Helps that Apple products are far superior, but that’s another post.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.