Researcher iSupply took a look inside the latest iPod to find out how much Apple is making off it and who supplies its parts. Apple unveiled the iPod nano on September 7th and the ultra-thin digital music player has been met with rave reviews.
Arik Hesseldahl writes for BusinessWeek, “Now that the Nano is on the market, attention has turned to more practical questions. Among them: How fat are Apple’s margins on it? …Market research firm iSuppli set out to satisfy the curiosity by buying the $199 2-gigabyte version of the Nano and tearing it apart. The verdict? It costs Apple $90.18 in materials to build the unit and $8 to assemble it, leaving a profit margin before marketing and distribution costs of about 50%. That’s consistent with the margins on earlier iPod versions and serves as a reminder of what a profit machine the iPod family of products has become for Apple since it was introduced in 2001.”
Find out what’s inside Apple’s iPod nano in the full article here.
Advertisement: Apple iPod nano. 1,000 songs. Impossibly small. From $199. Free shipping.
Related articles:
Chip analyst: Apple is probably losing money on iPod nano – September 19, 2005
USA Today: ‘iPod nano a hit’ – analyst predicts 26 million iPods will be sold in next two quarters – September 19, 2005
Also-ran MP3 player makers miffed by Apple’s impossibly low price for iPod nano – September 09, 2005