iPod Nano Worth $90

[OuterLimits]

Firm takes iPod Nano apart, discovers truth

Bill of materials is $90, iSuppli claims


By INQUIRER staff: Donnerstag 22 September 2005, 15:07

MARKET RESEARCH firm iSuppli has taken apart an iPod Nano, and claimed it shows Apple has made some "surprising choices" in the components it chose.
The firm offers a "teardown analysis" which it said showed the device uses a Portalplayer 5021C system on a chip and a Cypress CY8C21434 for the circuitry behind the "click wheel" interface.

This, said iSuppli, is surprising because Sigmatel rather than Portalplayer had dominated the flash memory MP3 player segment. Apple uses the Sigmatel STMP3550 chip for MP3 processing in its iPod shuffle. But the 5021C is not a standard Portalplayer part.

It said that these, along with other ICs (integrated circuits), account for 77 per cent of the $90.18 total bill of materials (BOM) cost of the Nano.


http://www.theinquirer.net/?article=26388

[kevdo]

What's your point? That Apple, like most companies, wants to make a profit? That Apple, like most companies, has done a great job leveraging their market position to lower the cost of the device, benefiting the company as well as their customers. Or, like few companies, that Apple still continues to make great products.

If you're going to post please provide some reason for the posting.

[OuterLimits]

What's your point? That Apple, like most companies, wants to make a profit? That Apple, like most companies, has done a great job leveraging their market position to lower the cost of the device, benefiting the company as well as their customers. Or, like few companies, that Apple still continues to make great products.

If you're going to post please provide some reason for the posting.

I thought the information was 'worth sharing' -- so sjuuue me Mr. Non-Cheapskate. Oy a conspiracy itz!

[BSquared]

I'm with kevdo

...and?

it's hardly surprising news and it won't stop people buying them by the gazillion...personally i love my iPod (2nd gen/old school model)...I don't care if I paid more than the component parts are worth...I love what it allows me to do and the value that I feel it adds to my lifestyle (and no I don't care if I'm being "duped" 'cos I enjoy it)

Marketing theory is basically that a thing is worth what someone is prepared to pay for it...if you don't want to buy one don't...if you feel like it's a rip-off don't buy one...the free market is a wonderful thing

[OuterLimits]

I'm with kevdo

...and?

it's hardly surprising news and it won't stop people buying them by the gazillion...personally i love my iPod (2nd gen/old school model)...I don't care if I paid more than the component parts are worth...I love what it allows me to do and the value that I feel it adds to my lifestyle (and no I don't care if I'm being "duped" 'cos I enjoy it)

Marketing theory is basically that a thing is worth what someone is prepared to pay for it...if you don't want to buy one don't...if you feel like it's a rip-off don't buy one...the free market is a wonderful thing

I guess if you 'tear-down' a Sargent (painting) itz not much more than canvas and pigments... But these little thing-mehjiggies are supposed to do something too. How can you 'quantify' a life-style improvement?

[Hittman]

it's hardly surprising news and it won't stop people buying them by the gazillion...personally i love my iPod (2nd gen/old school model)...I don't care if I paid more than the component parts are worth...

If you hadn’t, Apple would be in trouble.

And if someone can build their own for $90, more power to them. Hell, sell them for $150 and make a killing.

[BSquared]

OuterLimits asks How can you 'quantify' a life-style improvement?

I can't. I didn't try to. All I said was that I am comfortable with the 'value for money' that I got from buying my iPod. My little thingamy-jiggy does do something. It allows me to sit on the bus without being bothered by wierdos (for some reason I am a magnet for strange people and frankly I just wanna sit on the bus and chill not talk to a stranger about their latest alien abduction). It allows me to listen to entertainment of my choice at times I choose as I ride my bike or walk to work. It allows me to sit in my office and listen to all my old favourite songs or new indie music instead of the garbage commercial radio that my colleagues play.

Are there other, cheaper ways I could achieve the same outcomes? Probably. But I don't care. I was happy to pay the price I paid for the features it provides me. If apple are making an obscene profit from me and others like me...good for them. No one held a gun at my head to buy the thing.