Low Mac mini profits?

The latest Mac mini, at least in its entry-level design, is not an especially profitable product for Apple, says the analysis firm iSuppli. In conducting a new teardown of Apple's cheapest desktop, the firm notes that the bill of materials is estimated be $376.20, a little less than $223 below the retail price. Adding manufacturing brings costs up to $387.14, and the company must also pay for expenses such as licensing, marketing and shipping.

One of the greatest expenses is said to be the 2GHz Core 2 Duo P7350 processor, estimated to be worth $118.35. By contrast, the GeForce 9400M graphics chip costs $65.16, and the 120GB hard drive is worth $46. The included optical drive is worth only $32. All together the system still is more expensive than it might otherwise be, as a result of an Apple insistence on keeping the system small through the use of notebook parts.

iSuppli observes that the computer also consumes more power than one might expect, requiring a 110W external power supply as opposed to the 85W component provided for the original Mini. The new system does use tightly efficient circuitry however, and can consume as little as 13W when idling. The system thus earns its environmental credentials, says iSuppli.

by MacNN Staff