Teardown reveals 46.1% markup for new iPod nano - HotHardware
Teardown reveals 46.1% markup for new iPod nano

Teardown reveals 46.1% markup for new iPod nano

According to an iSuppli teardown of the new Apple iPod nano, despite new features and with the same $199 price for the 8GB model, Apple is making more money off of the product. 

While the top-of-the-line 8 GB Apple iPod nano still retails for $199, the completely revised new model costs Apple about $7 less to build than the previous edition, based on a preliminary teardown analysis by iSuppli. With a bill-of-materials at $82.85 per unit, according to iSuppli's estimate, Apple enjoys a nearly 42% markup in retail price.

Of course, that's not the company's wholesale margins for its resellers, though a great many units are sold through Apple Store outlets and through Apple.com - where it can feel the full benefit.


The big surprise was the use of Micron flash memory instead of Samsung memory.  It was believed the deal Apple made with Samsung for the memory for the first nano was a big coup, yet Micron is supplying the memory in the new nano, though Samsung is still supplying the SoC chip.
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Someone at Apple needs to get their margins in line and beat on their suppliers a bit more! LOL! A gross margin of 42%... wonder what net is after cost of sales etc?

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