iSuppli Teardown Reveals iPod Nano 6G's Inexpensive Parts

[Michael Essany]

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

[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.

[rampagebegins]

Gets me all hot an bothered

[greek.guy]

crazy stuff..

[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.

[havoc0351]

I only complain when they're products don't work as advertised...

[jiggyjae]

Ridiculous because they sell this little piece of crap for double the worth.

[shoung0690]

"mass production is cheap"

[1shuttle1]

How else would you have the honor of watching a apple comercial 8 to 100 times a day.

[Be Expressive]

They have to make money some how

[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?

[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

[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

[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.

[nevv]

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.

[Cer0]

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.

[bubby8ball]

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?

[2006yamahaR6]

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