alik_05
10-23-2005, 08:51 PM
Component cost of video iPod estimated at $151 [Entertainment Industry]
While only Apple knows the exact cost to build the video iPod, a market research firm has dissected the device and came up with estimated bill of materials of $151. With a retail price of $299 for the 30 GByte version and $399 for the 60 GByte model, it looks like Apple is raking in a huge profit, but there is much than meets the eye.
iSuppli did a "teardown" and put a price tag on every component. Chris Crotty, Senior Analyst for Consumer Electronics with iSuppli, said that the $151 is the total Bill-of-Materials (BOM) cost or simply just the hardware costs. The BOM takes into account an estimated discount rate for each component and typically large companies like Apple can negotiate a substantial discount because of their buying power. Crotty points to their recent teardown of the iPod Nano where they estimated Apple received a 30 to 40 percent discount on Samsung's flash memory.
Read the full story Here (http://www.tgdaily.com/2005/10/21/isuppli-dissects-ipod/index.html)
While only Apple knows the exact cost to build the video iPod, a market research firm has dissected the device and came up with estimated bill of materials of $151. With a retail price of $299 for the 30 GByte version and $399 for the 60 GByte model, it looks like Apple is raking in a huge profit, but there is much than meets the eye.
iSuppli did a "teardown" and put a price tag on every component. Chris Crotty, Senior Analyst for Consumer Electronics with iSuppli, said that the $151 is the total Bill-of-Materials (BOM) cost or simply just the hardware costs. The BOM takes into account an estimated discount rate for each component and typically large companies like Apple can negotiate a substantial discount because of their buying power. Crotty points to their recent teardown of the iPod Nano where they estimated Apple received a 30 to 40 percent discount on Samsung's flash memory.
Read the full story Here (http://www.tgdaily.com/2005/10/21/isuppli-dissects-ipod/index.html)