iPad mini profit 'significantly below' average for Apple
26th Oct 2012 | 11:31
Cupertino-based firm taking a gamble
Apple has confirmed that the profit margin for its iPad mini tablet is "significantly below" the average for most of its products.
In an earnings call, Apple's chief financial officer Peter Oppenheimer explained that the Cupertino-based firm was making much less profit on the iPad mini compared to its other products, even though the 7.9-inch tablet costs more than its rivals.
Apple has already defended the price of the iPad mini, with Phil Schiller, senior vice president of worldwide marketing rebuffing claims that the firm's smaller slate is too expensive.
That said, at least Apple will be making some profit on the iPad mini. Both the Nexus 7 and Kindle Fire HD are sold at cost price, with Google and Amazon aiming to make their money back from customers purchasing media and apps.
The 7-inch tablet market is really hotting up now, with several big hitters battling for position and Google is expected to unveil more Nexus branded tablets at its New York event on October 29. Game on.