iPod Nano is Apple’s new love baby for the MP3-player market and many smaller MP3-player manufaturers in Taiwan has been complaining about Apple selling its player to cheap. This might very well be the case but there will still be no problem for Apple to make money on iPod Nano. The marketing survey company iSuppli, which earlier investigated Mac Mini, has namely dissected iPod Nano and calculated what the player costs to manufacture. The 2GB model of iPod Nano costs $199 in stores costs $90.18 in material costs and an additional $8 in production costs. With leaves us with a margin of about 50% before the costs for marketing and distribution.
This is about the same as other iPod-players and gives you a hint of the amount of money Apple makes on the iPod-series. iSuppli has gone over the various parts of Nano and not the least the flashmemory which Apple buys from Samsung with a real nice discount. According to iSuppli Apple pays $54 for 2GB from Samsung. This is after an agreement on buying 40% of Samsung’s NAND-flash production. Other manufacturers are forced to pay $90 for the same memory.
:: Read on about iSuppli’s survey of iPod Nano
