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Saturday, September 24, 2005

Unpeeling Apple's Nano

iSuppli took apart an iPod nano and based its results concluded that Apple could be making up to 50% profit margin on the 2GB iPod Nano. The 4GB model is supposedly mroe profitable than the 2GB model, so Apple should be doing really well.

The 2GB model coss $90.18 in materials and $8 to assemble. These estimates are based on Apple receiving a 40% price discount from Samsung on the flash memory in the iPod Nano. Comparing this to other Apple products, a Mac Mini costs Appled $283, giving it a margin of 44%.

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posted at 3:04 PM

2 Comments:

Blogger AdMiez said...

I think they didn't take into consideration many other costs. Only $10 for labor? You have to add to that the huge promotion, packaging, shipping and the development behind it. Even $100 seems pretty high for such a small device. And Apple is a business, they are about making profit, ain't no surprise that they will charge more than the real cost. Compare that to a $200 software dvd. It probably cost under $1 to make, but because of that you can't say they are making a profit of $199, the work was put on the development of the software.

12:16 PM  
Blogger nanoguy said...

True, they are only looking at the actual material and assembly costs for the parts in the nano itself. They aren't looking at development costs, etc. The main cost in the device is the memory which Apple is getting for a 40% discount off the actual price. So $100 is actually cheap considering the amount of memory in the device.

12:58 PM  

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