Originally Posted by ash471
Apple isn't charging a premium. The iPad mini is allegedly one of Apple's lowest margin products. The reality is that Google and Amazon are selling at cost or at a loss to get a user base and they make money other ways (search and content). That isn't Apple's business model. Apple makes good products and sells them for a fair price.
From several months ago. Costs are likely even lower now:
"The early verdict, shared exclusively withAllThingsD, is that the low-end eight gigabyte model of the Nexus 7, which sells for $199, costs $151.75 to build.
The higher-end 16GB model, which sells for $249, costs $159.25, the difference being the cost of the memory chips inside.
Andrew Rassweiler, who leads the teardown team at IHS iSuppli, reckons that Google will break even on the 8GB model (Note: which Google themselves generally stated) and will turn a tidy profit on the 16GB model. “Like Apple, Google realizes it can boost its profit margin by offering more memory at a stair-step price point. It’s getting $50 more at retail for only $7.50 more in hardware cost, which sends $42.50 per unit straight to the bottom line.”
Someone even earlier did a build estimate that showed Google's costs to be 20% higher than that, showing they were losing money on it, but they didn't actually tear down a Nexus7. Instead they guessed what hardware was used, unlike iSuppli which used a shipping device.