iSuppli places iPod 5G profit margin at 50 percent

Researcher iSuppli took apart 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."

Filed under: iPod