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Inside the Third Gen iPod Nano

Posted by Zonk on from the peek-under-the-hood dept.

ahess247 writes "When the leaked photos of the 3rd-gen iPod nano first hit the Web it quickly took the nickname 'little fatty,' but fat could be better used to describe Apple's profits on the project. BusinessWeek reports that a teardown analysis by iSuppli finds that it costs Apple only $58.85 to build the 4-gig iPod nano, and $82.85 for the 8GB version. The analysis also reveals some of Apple's suppliers, about which it is usually very tight-lipped. Synaptics is back as the supplier of the click-wheel technology, beating out Cypress Semiconductor which had it previously. Also of note: The same Samsung CPU chip that powers the video and audio in the nano is being used in the iPod Classic as well."

6 of 230 comments (clear)

  1. Manufacturing Costs by nurb432 · · Score: 3, Informative

    Are not all that go into the final street price. You got R&D, Marketing, Logistics.. Steve's Salary...

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  2. Worthless Numbers by Guanine · · Score: 5, Informative

    Many of the numbers iSuppli comes up with are pretty much made up. Regardless, most news organizations assume that the entire difference between retail of the device and the iSuppli number is "pure profit," etc. - this is utter nonsense. Previous iSuppli numbers have been shot down by reason, I hope to see the same thing in this instance.

  3. Yeah, but the price dropped too... by nweaver · · Score: 5, Informative

    Yeah, the v3 Nano is cheaper to build. Its also cheaper to buy, with a 4 GB unit now $150 and $200 for the 8 GB, as opposed to 2 GB for $150, 4 GB for $200, and 8 GB for $250.

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  4. Summary changed quotes to make them false by klossner · · Score: 5, Informative
    The comments about how parts pricing != cost to build are all correct. TFA got this right, but then the Slashdot summary changed their wording to make it wrong.

    Business Week:

    After taking apart the nano, iSuppli estimates that all the parts inside cost Apple $58.85 for the $149 model ... Slashdot:

    BusinessWeek reports that a teardown analysis by iSuppli finds that it costs Apple only $58.85 to build the 4-gig iPod nano Business Week reported nothing of the sort.
  5. I have one. by ryanisflyboy · · Score: 4, Informative

    I purchased a 3rd gen Nano for my wife. She is very pleased with it. She even manages to watch some of her favorite TV shoes on it. It might be slightly wide - but it is very thin. Our only complaint is the dozens of bugs. However, these all appear to be software based so hopefully most of the annoying ones get fixed soon. How hard is it to code something like coverflow? Please forgive me if I'm wrong - but that feature is by far the most buggy. I also can't say too many nice things about iTunes. Is apple trying to make it suck on purpose? That's what it seems like to me.

    Including it's shortcomings we are happy with it overall. Being able to personalize the player by engraving the back actually was a selling point. It takes a dumb electronic device and turns it in to a sentimental keepsake.

  6. Re:Shock! Horror! MS Office costs 10c! by NoMaster · · Score: 3, Informative

    You've never actually done any product-level R&D, have you?

    It's a little more complicated than the LEGO experience you seem to be describing...

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