“The Apple iPod family of digital media players keeps growing in sophistication and popularity,” Arik Hesseldahl reports for BusinessWeek. “It’s also growing more profitable for Apple with each passing revision to the product, says market research firm iSuppli. The researcher has just completed a teardown analysis of Apple’s second-generation iPod nano, released Sept. 12. The conclusion: It costs Apple significantly less to produce a player with average memory capacity than it did a year ago.”
“One noteworthy switch Apple made is in its core chip supplier, says iSuppli analyst Chris Crotty. South Korea’s Samsung Electronics now provides the main microprocessor, known as a ‘system on a chip’ (or SOC), which replaces a processor from PortalPlayer,” Hesseldahl reports. “Samsung’s processor handles all the main functionality for the device, such as the user interface and management of music files.”
“Only one part of the nano was more expensive than on the prior player: the outer enclosure. The new aluminum casing adds more than $2 to the materials cost of the player, up from about a dollar on the older nano, according to iSuppli,” Hesseldahl reports.
Much more in the full article here.
Gartner: Apple’s new iPods priced for profits, not market share – September 18, 2006
Samsung claims to have won contract for next-gen Apple iPod chip design – April 26, 2006