“Apple Computer’s latest iPod has some new capabilities — namely the ability to play videos — and also a notable new supplier, according to a market research firm which has taken apart the new gadget to see what’s inside,” Arik Hesseldahl reports for BusinessWeek.
“That market researcher, iSuppli, says chipmaker Broadcom is the new name among a list of chip and component suppliers that has changed little from other iPod models over the years. Broadcom’s chip handles the video, while longtime suppliers PortalPlayer and Wolfson Microelectronics are still responsible for audio chips,” Hesseldahl reports.
“The latest iPod, like its smaller sibling, the iPod Nano, enjoys similarly fat gross profit margins in the neighborhood of 50%, according to iSuppli analyst Chris Crotty, who estimated the price of the parts used in the iPod. He reckons the 30-gigabyte version of the new iPod, which sells at retail for $299, costs Apple $151 to manufacture. ‘This is in line with what we have seen with other iPod products from Apple,’ he says,” Hesseldahl reports.
Full article here.
The New iPod with Video. The ultimate music + video experience on the go. Buy it now at the Apple Store. From $299. Free shipping.
Of course, Apple has additional costs with the iPod apart from raw materials, including everything from offering free shipping via the Apple Store to product packaging on up to global marketing.
USA Today: Apple’s new iPod + video: world’s foremost portable music players have gotten only better – October 20, 2005
Comprehensive review of Apple’s iPod 5G with Video – October 20, 2005
The Motley Fool: ‘Apple’s new video-enabled iPod is about to save the televised content industry’ – October 20, 2005
Ars Technica reviews Apple’s new video-capable iPod – October 20, 2005
NY Times Pogue: ‘watching video on new iPod’s 2.5-inch screen is completely immersive’ – October 19, 2005
MSNBC columnist: after initial coolness wears off, Apple’s video iPod will wind up in dresser drawer
Apple’s $1.99 iTunes TV show downloads may be ‘the savior of good television’ – October 17, 2005
Apple opens Pandora’s box for the media business, could have profound long-term consequences – October 17, 2005
BofA analyst: Apple video play an ‘evolutionary opportunity,’ 9.3m iPods to be sold this quarter – October 17, 2005
Apple has the potential to change not just the audio industry, but the whole entertainment industry – October 17, 2005
Advertisers welcome Apple’s iTunes Store commerical-free content – October 17, 2005
New York Times writer can’t think different: ‘video iPod may not be ready for prime time’ – October 17, 2005
Podfather: iPod porn is going to be huge – October 14, 2005
Forrester Research: Apple transformed music distribution, now it is doing the same for video – October 14, 2005
Watching episode of ABC’s ‘Lost’ on 2.5-inch iPod screen surprisingly compelling – October 13, 2005
Get ready for the iPod video torrent search sites – October 13, 2005
Apple’s new iMac G5, iTunes 6, iPod video designed to bait Hollywood – October 13, 2005
Apple video iPod+iTunes could create mass audience for video on the go, despite studios’ misgivings – October 13, 2005
Using QuickTime Pro to create videos for playback in new Apple iPods – October 13, 2005
Analyst: Apple has just produced ‘the tipping point’ for entertainment content – October 13, 2005
Apple’s video play likely to unsettle movie, TV, advertising and retail markets for years to come – October 12, 2005
Apple unveils new 5th generation iPod, now plays music, photos, and video – October 12, 2005