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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."

3 of 230 comments (clear)

  1. 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.

  2. 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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  3. 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.