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  • Inside the Mac Mini: BOM and manufacturing costs total $387.14

    The computer uses many components found in portable PCs

    Jim Carbone -- Purchasing, 7/2/2009 11:19:27 AM

    Top Cost Drivers in the Mac MiniApple's latest Mac Mini desktop computer carries a bill of materials (BOM) of $387.14, including component and manufacturing costs, according to a teardown analysis of the computer researcher iSuppli.

    Andrew Rassweiler, director and principal analyst for iSuppli, says unlike most desktop computers from other brands, the Mac Mini uses a lot of components designed for notebook computers, which results in a higher cost machine.

    For example, the Mac Mini uses Intel's Core 2 Duo P7350 microprocessor, which is designated as a mobile chip. The Mac Mini torn down by iSuppli was equipped with a 2GHz clock speed version of Core 2 Duo P7350, which carries an iSuppli estimated price of $118.35.

    Another mobile chip embedded in the Mac Mini is the Nvidia GeForce 9400M graphics and I/O controller hub. Apple commonly uses this same part in its MacBook line of notebook PCs. The Nvidia GeForce 9400M comes in at an estimated price of $65.16.

    Other mobile components in the Mac Mini that command a price premium include the 2.5-inch form factor hard-disk drive (HDD) and the slim optical-disk drive (ODD). The Hitachi 120GByte 2.5-inch-format HDD comes in at a price of $46, while the Mac Mini's ODD is priced at $32.

    The BOM/manufacturing costs does not include the cost of intellectual property, royalties and licensing fees, software loading and test, shipping, logistics, marketing and other channel costs.

    This low-end model of the Mac Mini is priced at $599, reflecting the relatively thin BOM/manufacturing margins generated by Apple's PCs in relation to its lower-cost consumer items, specifically the iPod line.

     Also see: iPhone 3G S has BOM and manufacturing cost of $178.96

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