Your $200 iPod nano Costs About $90 to Make

Friday, Sep. 23 2005 | Author: Dave

Engadget has an article up, pointing to a Toms Hardware article on how the iPod nano only costs around $90 to make.

Itâs important to point out that iSuppliâs figure does not include Appleâs cost of business (marketing, operating their dozens of storefronts, employing tens of thousands globally, etc.), however, which they conservatively estimate as being anywhere from 15-20% of the unitâs cost, a figure that just doesnât seem quite right to these ears. Then again, a 40% ($80) margin on the nano wouldnât exactly surprise us, either.

Is it wrong that I still want one?

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7 Responses for "Your $200 iPod nano Costs About $90 to Make"

Brian Larter

September 23rd, 2005 at 2:42 pm
1

no. the $90 cost is on;y the hardware. what about the advertising? the software that went into it? and copy writes and so forth?

also if the unit only cost $90 that means over time the company will be able to reduce the items (because the advertising worked so well) cost and pass those savings onto the customer.
Norgus

September 23rd, 2005 at 3:13 pm
2

Indeed, is it surprising they are sold at a profit or something?
cliche

September 23rd, 2005 at 7:32 pm
3

In other news, it’s been reported that:

-Apple’s R&D department works for free

-Manufacturers don’t have any margin, so virtually work for free

-They’re shipped on sailboats that were made for free, never break down or need maintainence, and crewed by volunteers

-Firmware and future updates are coded by pet monkeys

-Advertisement magically pops out of nowhere

-Retailers like ‘Best Buy’ leave no margin

-Apple stores operate at no cost, and online counterparts run on free bandwidth

-Steve Jobs lives on the streets under carboard boxes
Griffith

September 24th, 2005 at 4:10 pm
4

This calls for one of those:

“Everytime you buy an iPod Nano…”
mike

September 24th, 2005 at 8:54 pm
5

man this is retarded. why bother reporting it, if you then turn around and say.. ‘oh yeah.. the actual cost of good is 90.. the cost of making the thing is more like 150.. sorry’
Tom

December 18th, 2006 at 12:50 pm
6

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Richard Jamison

January 7th, 2007 at 12:38 am
7

$110 profit on an iPod Nano? Too bad Apple owns everything relted to them. Somebody could make big-ass bucks selling those Nanos for $130.