iPod nano priced right, but costing Apple
updated 09:30 am EDT, Thu September 8, 2005
iPod nano costs
S&P Equity Research points out that the iPod nano pricing is " than with the outgoing iPod mini. The 2GB iPod Nano, which sells for $200, contains around $90 worth of volume market flash, while the $250 4GB version has about $180 worth of memory, said Semico's Jim Handy. By contrast, similarly-sized mini hard drives costs about half for the same amount of storage. While Apple likely received a significant discount from its suppliers, the same was probably true for hard drive orders as well. Moreover, Samsung's margins for flash in the second quarter came to around 45 percent. Thus, Samsung would have to sell the memory at a loss or close to break even to give Apple a price that would be equal to a price for hard drive storage.
Fresh-Faced Recruit
Joined: Jun 2003
age old problem
Style over Sensable business anyday. Even if it's just $5 profit off each unit, Apple was the first to market with the razer-thin iPod. No one else will be able to compete, those who like iRiver's like it for the swiss-army factor, not the size (#1 omplaint). Apple has one once again with the models and beautiful people of the world.