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iSuppli places iPod 5G profit margin at 50 percent

updated 03:40 pm EDT, Fri October 21, 2005

iPod 5G profit margin

Researcher iSuppli Apple's latest, video-capable iPod to attempt to determine how much the company is making on the device. The latest iPod, like its smaller sibling, the iPod Nano, enjoys similarly high gross profit margins in the neighborhood of 50 percent, according to iSuppli analyst Chris Crotty, who estimated the price of the parts used in the iPod. He reckons the 30-gigabyte version of the new iPod, which sells at retail for $299, costs Apple $151 to manufacture. "This is in line with what we have seen with other iPod products from Apple," he says. The analyst raised some concerns about Apple's ability to keep up with demand. "We know that Apple has only one source for the display of this iPod," Crotty says. "And we also know that it is supply-constrained."




by MacNN Staff

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  1. jrbm689

    Joined: Dec 1969

    0

    WOE IS APPLE!

    AT THOSE INSANE MARGINS APPLE IS GOING TO PUSH AWAY ALL CUSTOMERS TO OTHER RESPECTABLE FIRMS LIKE IRIVER AND RIO!!! APPLE IS GOING DOWN THE TUBES!!! ABANDON SHIP!

  1. wintermute1

    Joined: Dec 1969

    0

    Gross Margins

    I would ask that MDN read these two stories in context -- they contradict each other. Could you cluster them together (the stories) and put one set of comments in that place dubious news item in the proper context?

    Just a suggestion.

    W

  1. Arcady

    Joined: Dec 1969

    0

    Bogus

    According to these morons, the new iPod apparently had zero R&D cost. These things cost money to develop, and you have to make that back somewhere... like in the price of the product!

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