Re: The only reason Apple made a video iPod is the idea comes basically for free
The video feature is not free. There is an extra Broadcom chip for video in the iPod. My guess it is in the $5-10 range. IIRC, in the last quarter Apple sold about 4M ipods (HD based). So, this "free" feature is costing Apple $20M - $40M per quarter.
http://yahoo.businessweek.com/technology/content/o ct2005/tc20051021_937792.htm
just a minor point, Apple's business model is to make money on the iPod not itunes. They just break even on iTunes. Their gross margin on nano is 50% and ipod is around 40%. Itunes is around 10%.
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Re: The only reason Apple made a video iPod is the idea comes basically for free The video feature is not free. There is an extra Broadcom chip for video in the iPod. My guess it is in the $5-10 range. IIRC, in the last quarter Apple sold about 4M ipods (HD based). So, this "free" feature is costing Apple $20M - $40M per quarter. http://yahoo.businessweek.com/technology/content/o ct2005/tc20051021_937792.htm
just a minor point, Apple's business model is to make money on the iPod not itunes. They just break even on iTunes. Their gross margin on nano is 50% and ipod is around 40%. Itunes is around 10%.