Nano Economics

by

A recent dissection of the new iPod nano music player conducted by iSuppli Corp.’s Teardown Analysis service reveals that Apple Computer Inc. is making decent money selling iPods.

Each 2GB Nano bill-of-materials is estimated to cost $90.18 by iSuppli. Add a little labor and total cost to build must be about $100. The 2GB Nano retails for $199.

Apple and the retailer split the remaining $99 somehow. It would be interesting to know what the split is. Anybody know?

You can read a detail review of the Nano at
http://arstechnica.com/reviews/hardware/nano.ars

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