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  • iSuppli Teardown Reveals iPod Nano 6G's Inexpensive Parts



    As the iPods get smaller and smaller, so too - apparently - does the cost of the device's ever shrinking components. According to the latest findings from our tear-down pals at iSuppli, the 8GB sixth-generation iPod nano roughly costs $43 to construct. iSuppli recalls that the fourth generation nano was only slightly less expensive to produce at around $41.

    “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, teardown services manager, for iSuppli. “This has enabled Apple to offer the smallest iPod including a touch screen, while keeping component costs to a strict budget.”

    That "strict budget" alluded to was aided greatly, it seems, by Apple's fiscally savvy choice of 8GB of NAND flash memory for storing music and also the removal of the previous generation's camera. All told - and to save you from doing the math - the production cost of the new nano is approximately just under one-third of its retail price.


    iSuppli
    This article was originally published in forum thread: iSuppli Teardown Reveals iPod Nano 6G's Inexpensive Parts started by Michael Essany View original post
    Comments 17 Comments
    1. EskimoRuler's Avatar
      EskimoRuler -
      I dont mind how much they make off the product because that's why there in business, to make money. Apple can make this kind of profit because there products seem to be very inelastic to people. But the fact that the nano lost features to gain other features that in my opinion don't out do the old ones made me a little upset. Touch screen is cool, but on at least an iPhone sized screen. Although physical volume buttons was something ive wanted.
    1. rampagebegins's Avatar
      rampagebegins -
      Gets me all hot an bothered
    1. greek.guy's Avatar
      greek.guy -
      crazy stuff..
    1. zoso10's Avatar
      zoso10 -
      Yeah the markup on their products is crazy. But they make quality products and it's really cheap so they're making a good profit.
    1. havoc0351's Avatar
      havoc0351 -
      I only complain when they're products don't work as advertised...
    1. jiggyjae's Avatar
      jiggyjae -
      Ridiculous because they sell this little piece of crap for double the worth.
    1. shoung0690's Avatar
      shoung0690 -
      "mass production is cheap"
    1. 1shuttle1's Avatar
      1shuttle1 -
      How else would you have the honor of watching a apple comercial 8 to 100 times a day.
    1. Be Expressive's Avatar
      Be Expressive -
      They have to make money some how
    1. 2006yamahaR6's Avatar
      2006yamahaR6 -
      yeah but remember the most important reason - they charge the prices they do because people will pay them....

      Think about this - what if you told someone 10 years ago that the most common phone in the world today had an msrp of between $500-600 how do you think they'd react?
    1. whereswaldo's Avatar
      whereswaldo -
      Dont forget the money it costs to pay workers and ship it from china, that's defiantly more than $43


      Sent from my iPhone using ModMyi
    1. iamutman's Avatar
      iamutman -
      You guys are also forgetting that this figure is purely an estimation of materials cost. If doesn't include cost if advertising, marketing, shipping, research and development, or other overhead costs.

      No doubt they are still making a profit (and probably a substantial one), but when truly looking at the big picture the markup isn't truly 200%

      Posted from my iphone
    1. nautical79's Avatar
      nautical79 -
      Remember that This is only the hardware and manufacturing price. doesnt include software, licensing and royalties. i'm pretty sure that IOS is not cheap to build.
    1. nevv's Avatar
      nevv -
      Quote Originally Posted by 2006yamahaR6 View Post
      yeah but remember the most important reason - they charge the prices they do because people will pay them....

      Think about this - what if you told someone 10 years ago that the most common phone in the world today had an msrp of between $500-600 how do you think they'd react?
      they probably expected to have a mini computer in their hands with a camera.
    1. Cer0's Avatar
      Cer0 -
      Quote Originally Posted by 2006yamahaR6 View Post
      yeah but remember the most important reason - they charge the prices they do because people will pay them....

      Think about this - what if you told someone 10 years ago that the most common phone in the world today had an msrp of between $500-600 how do you think they'd react?
      They had phones back then that expensive that did far less than what we have now.
    1. bubby8ball's Avatar
      bubby8ball -
      Quote Originally Posted by Cer0 View Post
      They had phones back then that expensive that did far less than what we have now.
      Yeah anyone remember when the Razr first went on sale? $600 for that piece of crap. Wonder if in 10 years we will looking at the iPhone as a piece of crap as we use our iTerminators to communicate with each other?
    1. 2006yamahaR6's Avatar
      2006yamahaR6 -
      Quote Originally Posted by Cer0 View Post
      They had phones back then that expensive that did far less than what we have now.


      Absolutely true but they weren't nearly as common as the iPhone is today

      As far as the razor goes, I bought 2 back when they first came out for 350 or 400and my family thought I was on crack haha