iSuppli: iPod Nano Materials Cost $43.73

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News Posted: Tue, Sep 28 2010 10:29 AM
The good folks over at market research firm iSuppli picked apart Apple's latest iPod Nano, going through the parts piece by piece to come up with a true cost of materials. The final tally? Just $43.73, which only applies to the parts, and not the cost of labor, the so-called Apple Tax, and everything else that jacks up the price more than three-fold in the retail sector.

"Instead of piling on features, as so many brands do with their latest products, Apple with the sixth-generation iPod has maintained or even removed some attributes in order to fit the form factor and function desired," said Andrew Rassweiler, director and principal analyst and teardown services manager, for iSuppli. "This has enabled Apple to to offer the smallest iPod including a touchscreen, while keeping component costs to a strict budget."

According to iSuppli, only the fourth generation iPod Nano had a less expensive Bill-of-Materials (BOM), which at the time came out to $40.80. Nevertheless, the sixth-gen device is poised to be Apple's most profitable Nano yet.

"When manufacturing costs of $1.37 are added to the BOM, the new Nano carries a combined material and product cost of $45.10," iSuppli explains. "This adds up to about 30 percent of its retail price.

"Since the third generation of the Nano line, the average cost to retail price ratio has been 33 percent, or roughly one-third of the retail price. However, with its lower BOM cost, the new iPod should command a higher margin than the previous member of the line."
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lonewolf replied on Tue, Sep 28 2010 3:29 PM

There is really not much to this 6th Generation IPod. At least on my old 3rd Generation I could watch movies and such. The 3rd Generation was a perfect balance between function and portability.

But if all one wants is a music device for the gym and what not this new one is perfect.

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SO the extra Fiddy comes from shipping them from China!

If they just made them here then, then it could be fifty dollars cheaper and people would have had jobs so they can go out and buy them since this is the only market that actually supports Apple. Everywhere else in the world they are buying the Knock-offs that are being mass produced by the rest of the country every time that Apple introduces the latest innovations.

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realneil replied on Tue, Sep 28 2010 8:52 PM

Nope,.. I don't want one. I have an 'antique' 160GB iPod that plays music and movies too.

Dogs are great judges of character, and if your dog doesn't like somebody being around, you shouldn't trust them.

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wow,i dont have a ipod yet

looking for new notebook

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