Apple new sixth-generation iPod nano costs from $43.73, according to iSuppli’s latest tear-down analysis of the same.
The 8GB version of the latest iPod carries an estimated BOM of $43.73, the second-lowest BOM of all members of the iPod line — only the fourth generation product was less expensive to manufacture at $40.80.
“Instead of piling on features, as so many brands do with their latest products, Apple with the sixth-generation iPod has maintained or even removed some attributes in order to fit the form factor and function desired,” said Andrew Rassweiler, director and principal analyst and teardown services manager, for iSuppli. “This has enabled Apple to offer the smallest iPod including a touch screen, while keeping component costs to a strict budget.”
The tear down people note, for example, that the latest Nano omits the camera found in the previous-generation product and uses 8GB of NAND flash memory for music storage.
The analysts think that Apple’s decision to slow the annual increase in memory inside its products reflects increased stability in pricing in the memory market.
When manufacturing costs of $1.37 are added to the component costs, the new nano carries a combined material and production cost of $45.10, iSuppli says, around 30% of retail price.