iSuppli: new iPod nano costs Apple less than $83 in components

Filed under: ,

The iPod nano is the “most popular music player in history” according to Steve Jobs. So there’s nothing like an iSuppli teardown of the new, 3rd gen device to get the ol’ analyst juices flowing. So get this: iSuppli claims that for every $149 4GB nano and $199 8GB nano sold, Apple’s components costs are just $58.85 and $82.85, respectively. That’s an 18.5% lower direct materials cost than the previous nano. In other words, a substantial increase in margins for what should be a tidy boost in Apple profit after covering R&D costs. The teardown also indicates that Apple has once again opened the money trough to a whole new bevy of suppliers including Dialog Semiconductor, Intersil, and Synaptics. Micron is the big winner here as they supply the NAND flash storage whereas Toshiba provides it for the iPod touch. Could be that the effects of Samsung’s NAND factory power outage are starting to show. Enjoy it while you can suppliers, chances are you’ll be begging for Apple’s business once the next round of product refreshes goes down. Bill of materials after the break.

Continue reading iSuppli: new iPod nano costs Apple less than $83 in components


Read | Permalink | Email this | Comments

Office Depot Featured Gadget: Xbox 360 Platinum System Packs the power to bring games to life!