Inside the Third Gen iPod Nano

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."

Comments

Re:Call me back...

[tomstdenis]

I'm sure they've re-couped the initial R&D costs and then some. It's not like the Nano has completely different firmware from the classic or other versions.

At this point it's basically covering retail margins, returns, and a big fat percentage of profit.