AAPL Stock: 113.29 ( + 0.37 )

Printed from

Margins on iPod nano could be as high as 50 percent

updated 09:55 am EDT, Thu September 22, 2005

iPod nano margins

Market research firm iSuppli says that Apple's , making the extremely thin player as profitable as earlier models of the iPod. The company broke down the 2GB version of the $200 iPod nano and found that it costs Apple just over $90 in materials to build the unit and $8 to assemble it. That leaves a profit margin--before marketing and distribution costs--of about 50 percent, according to a report quoted by BusinessWeek. The analysis also found that Portoal Player supplies the audio chips--much like all previous iPod generations except the Shuffle and that San Jose, Calif-based Cypress Semiconductor was the component supplier for clickwheel technology --at the expense of Synaptics, which powered most of the previous iPod generations.

"That's consistent with the margins on earlier iPod versions and serves as a reminder of what a profit machine the iPod family of products has become for Apple since it was introduced in 2001. Margins on the computer-maker's other products tend to be slimmer. An iSuppli teardown of the Mac Mini found the cost of material and manufacturing on that computer to be about $283, leaving a gross margin of 44% before marketing and distribution costs."

by MacNN Staff





Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

ZTE Spro 2 Smart Projector

Home theaters are becoming more and more accessible these days, but maybe you've been a bit wary about buying a home projector. And h ...

MSI Geforce GTX 970 100ME

When Nvidia announced a new line of video cards in September 2014, many people thought things would continue to be business as usual i ...

Wren V5US Wireless Sound System

If you're a music fanatic, chances are you are, by extension, a bit fanatical about what you listen to your music on. If you're like ...


Most Commented