IHS performed a teardown of the iPad mini to reveal that the device actually costs $188 to build, while Apple starts the pricing from $329. $188 is the cost to build the WiFi 16GB version of the remarkably small iPad mini. The 32GB and 64GB models cost an additional $90 and $162 to build, respectively.
LG Display and AU Optronics supply the 7.9-inch touch-sensitive display for the iPad mini which costs around $80. Despite the bad relationship with Samsung, the company still supplies the A5 chip supported by the iPad mini.
South Korean chipmaker Hynix Semiconductor supplies the flash memory, while Japan’s Elpida manufactures the system memory which totals to $15.50 of the materials cost.