iPad Mini; The Monetary Performance So Far

There were various price presumptions before the launch of iPad Mini. While some thought new tablet to compete with Amazon Kindle Fire HD, thus to be priced at $199, others guessed the device to be available for $299. When the device was finally introduced, Apple Inc. priced it at $329.

Research firm IHS carried the teardown analysis of the iPad Mini and made a cost estimation of all the components used in the tablet. It reveals that chip and battery, display, and other parts of the base model of iPad Mini cost around $188 to Apple.

 

If we calculate the cost of the components, it is 57 percent of the retail price, which means that Apple is getting a gross margin of 43 percent on the iPad Mini.

 

What is Taking up the Margin Part?

 

The iPad Mini is coming with GF2 technology, which reduces the thickness of the display. Since, the technology is in early stage, there might be some glitches. There are chances of Apple getting higher margins once it overcomes problem areas.

 

What Adds Up to the Margin?

 

It is the iPad Mini models with higher memory, which are generating higher profits for Apple. The company is selling Wi-Fi only 32GB and 64GB models at price of $429 and $529 respectively. The price of flash memory is significantly low. Adding flash memory of 32GB and 64GB is costing Apple $8 to $24, but it is making profit of $90 and $162 per unit. So, higher the sales of 32GB and 64GB versions of iPad Mini, better the profit margins of Apple.

 

What are Other Tablet Makers Getting?

 

IHS has also looked at the Surface tablet priced at $499 for the base model. As per the estimation, the cost of components in the 32GB model is $271. Microsoft is also selling Touch Cover at $120, which might be costing $16 to the company and is adding significantly to profit share.

 

Amazon is however focusing more on increasing its customer base instead of profit percent. The base model of Kindle Fire HD is priced at $199 however, the total cost of the components is said to be $165.

 

Apple iPad Mini is a recent launch but its aggressive cannibalization might add 3 million tablets to Apple's kitty at the end of the last quarter of 2012. Price is one of the major criteria for people preferring iPad Mini over the iPad. Another research firm IDC in its just-released 2013 predictions has revealed that devices with 8 inch or smaller screens will capture 60 percent of the tablet market, which indicates higher profit margin for Apple iPad Mini.

 

This post comes to you from Copper Mobile, one of the top iPhone developers and iPad application development companies providing enterprise app development solutions.

iPad's Market Share Sees a Drop in Third Quarter of 2012

IDC's third quarter report has come out with some astonishing numbers. The market share of Apple iPad has dropped to 50.4%, which was 59.7% in the same period last year.

Apple is still number one in the tablet market followed by Samsung, which has jumped from 6.5% to 18.4% in that same period. The third place is acquired by Amazon with 9%, Asus comes forth with 8.6%, and Lenovo is the last in top 5 with 1.4%.

IDC has revealed that 5.1 million Samsung tablets were shipped in third quarter of 2012, which is 115% and 325% more than second quarter of 2012 and third quarter of 2011, respectively.

Vendor	3Q12 Shipments	3Q12 Market Share	3Q11 Shipments	3Q11 Market Share	3Q12/3Q11 Growth
Apple	14.0	50.4%	11.1	59.7%	26.1%
Samsung	5.1	18.4%	1.2	6.5%	325.0%
Amazon	2.5	9.0%	NA	NA	NA
Asus	2.4	8.6%	0.7	3.8%	242.9%
Lenovo	0.4	1.4%	0.2	1.1%	100.0%
Others	3.3	12.2%	5.4	28.9%	-38.9%
All Vendors	27.8	100%	18.6	100%	49.5%

Amazon has done a brilliant job in the third quarter and Kindle Fire line-up is one of the factors that helped it in doubling the market share quarter-over-quarter.

Apple iPad mini has just entered the market, so it is difficult for us to come-up with future predictions at present.

Cloud Based Photo Sharing Platform Launched for iPad

Cloud based photo sharing platform by Everpix exits from its beta period, claims a report published in TechCrunch. The service that was launched not very long ago in the year 2011 at the TechCrunch Disrupt SF will be replaced with a new website that will provide premium services in the field of photo sharing using your email account. An application that can run from an iPad and at the same time allow the user to view photos from the user’s desktop and the web on a single interface will also be introduced in due time.

 

Everpix has been known for introducing some of the best technology when it comes to identifying photos of people, nature, or food. The announcement of the new applications has thus piqued the interest of the users, both individuals and enterprises. But if initial reports are to be believed, the most interesting new app is still under construction and will be announced gradually. The total amount of $1.8 million that Everpix had acquired from investments with Index Ventures, 2020 Ventures’ David Williams, Kii Capital, and 500 Startups will be used in the development of the new website & its features.

 

While the iPhone and iPad do not allow a user to attach more than five photographs in a single mail, the Cloud based services will help users share several digital photographs stored either in web services like Facebook or mobile devices using the iOS platform. The new website which will be launched soon promises improvements in handling animation & other photography by using a feature named Photo Mail. This brand new feature will reportedly enable collection of photos derived from sources like Picasa, Flickr, iPhoto, or Instagram, and share as many of them with others using your email account.

 

Therefore, for a photo veteran, or for an amateur who loves adding & organizing an existing photo collection, the new cloud based services will come as a technological boon.