The firm's chief financial officer Peter Oppenheimer revealed that the 7.9-ich tablet generates "significantly below" average profit compared to its larger counterparts.
The news comes as a surprise considering Apple generates the majority of its revenue through hardware sales, while doing little more than breaking even with iTunes.
Oppenheimer made the announcement during Apple's fourth quarter earnings call, where it was confirmed that the company's fiscal results had fallen below expectations.
The company posted quarterly revenue of $36.0 billion (£22.3 billion) and a quarterly net profit of $8.2 billion (£5 billion) or $8.67 (£5.37) per share.
The numbers miss Wall Street expectations, which predicted $8.75 (£5.43) on sales of $35.8 billion (£22.2 billion).
Apple sold 26.9 million iPhones, representing 58% unit growth, as well as 14 million iPads during the quarter, resulting in a 26% increase over the same time period last year.
Pre-orders for the iPad Mini commenced today (October 26) following its unveiling at a press conference earlier in the week.
Introducing the iPad mini: