The Profit Margin on the iPod nano

Ant writes "BusinessWeek Online reports that researcher iSuppli took a look inside the iPod Nano to find out how much Apple is making off it, and who supplies its parts. From the article: 'Apple has sold some 16 million iPods in the first nine months of fiscal 2005, and 21 million since its inception. Thus far in fiscal 2005, the iPod has brought in $2.6 billion in revenue, accounting for about 25% of Apple's total.'"

Comments

Re:Tooling? Investment?

[hcdejong]

And don't forget the R&D, a factor that doesn't seem to be included in the figure at all.

Re:The part of the article that applies

[Anonymous Monkey]

You make a good point. Profit on parts could be 50%, but once you pay for labor, shiping, and all the varous support departments (accounting, marketing, logistics, exc...) and then the retailer pays for the brick and morter end 50% can drop to the 5% to 10% range very quickly.