The iPad Mini could go on sale for $299 when it hits the market, according to a tech expert who estimated the building costs of the tablet and a profit that would be satisfactory for Apple.

Tech blogger Sameer Singh of Tech-Thoughts.net, estimated that the iPad Mini costs Apple $189.32 to build, and based upon this figure, he estimates that Apple would sell it for $299 to get a 37 percent profit.

Singh broke down the costs of the build-of-materials (BOM) such as memory, display, touchscreen, processor, camera and battery and released the following chart:

The iPad Mini is rumored to be released in October, at a separate launch event from the iPhone 5 set for September 12.

The tech blogosphere thinks Apple would garner more attention if it lets the excitement for the iPhone 5 play for a while, before unveiling the new smaller iPad.

"The iPhone is too big, too cool, and garners too much attention -- and it's in Apple's interest to keep that attention undiluted," tech blogger John Gruber from All Things D wrote.

The iPad Mini is expected to have a 7.85-inch display with a resolution of 1024 by 768 pixels and a smaller charging port. It is expected to compete with other popular 7-inch devices such as Google's Nexus 7 tablet, Amazon's Kindle Fire and Barnes & Noble's Nook.

Apple's latest tablet is already in production at Foxconn factories, according to analyst Peter Misek from Jeffries.

Analysts estimate Apple will sell tens of millions of iPad Minis within the first year.

Analist Amit Daryanani from RBC capital estimated that Apple will sell 40 million iPad Minis within the first year while analyst Misek estiamtes at least 8 million iPad Minis sold only in the "December quarter," considering the Christmas holiday.