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ASUSTeK to Manufacture Flash iPods?

Taiwanese newspaper Apple Daily reported yesterday that ASUSTeK Computer Inc. has received an order to manufacture about 5 million iPods based on flash memory for delivery next year, with the deliveries beginning in the first quarter of 2005. The FOB (wholesale export) price is said to be $65.

Taiwan-based ASUSTeK is a major manufacturing company, capable of producing two million motherboards and 150,000 notebook computers each month, as well as SCSI cards, video cards, network cards, and other peripherals.

Note: The article is in Chinese.

See related stories Flash iPod Details? and Toshiba To Supply Apple With Flash Memory?

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93 months ago
$65 for the entire Flash iPod, or just the flash components of the Flash iPod? If Apple can make it for only 65 bucks, even with a 50% we still will have our $100 digital music player from Apple.

If not, I am still guessing $149.
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93 months ago
Good ol' sherlock makes it readable. Sorta. Too bad they don't say what size flash memory will be in them.
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93 months ago
If it truly is $65 cost to Apple it will be interesting to see how much they mark it up.
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93 months ago

If it truly is $65 cost to Apple it will be interesting to see how much they mark it up.

Well Apple typically doesn't hit the market at a competitive price with the low-end -- more in line with the premium end of the market.

So we'll probably see them at the $149 or $199 price and @ 1-2GB.

Especially since it's doubtful that the $65 is the end price Apple is paying after shipping, marketing, and R&D are factored in. :(

Most other companies would eat those front end costs to get a foothold, and I don't see Apple doing that.
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93 months ago


So we'll probably see them at the $149 or $199 price and @ 1-2GB.


You think 2 GB? I thought people were saying that 2 gigs of flash would be way to expensive for an iPod.
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93 months ago

You think 2 GB? I thought people were saying that 2 gigs of flash would be way to expensive for an iPod.

Don't think they'll hit 2GB, but the 512MB is a bit unlike Apple since that seems to be where some of the $99-$149 players are.

Plus they tend to make huge aggressive moves at times, and offering a 1-2GB Flash iPod for the price of some of the Flash drive only units would be a typical Steve Jobs move. ;)

Plus it would tend to tie up the 1-2GB Flash modules other would need to compete against Apple. Apple tried this trick with the iPods and the iPod minis.

Edit: Don't think they'll top out with a 2GB flash iPod for $199 and a 1GB for $149, but it's almost something you would expect them to do.
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93 months ago
Apple likes to offer the quality choice in a market. So I expect their new low-end (for Apple) iPod to be the high end of the flash market.
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93 months ago
Are we sure motorolla has nothing to do with this one? Forgive me, I'm remaining stead fast with my assumption that the flash pod and the iPhone are 1 and the same where the iPhone will hold a 1 GB flash card that can hold your music.
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93 months ago
i dont know quality wise, but i know a lot of Asustek products just plain suck. If Asustek has decent quality, i wouldnt worry because Apple would be designing the interface.
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93 months ago

Apple likes to offer the quality choice in a market. So I expect their new low-end (for Apple) iPod to be the high end of the flash market.


True.. But it really depends. Apple wants to hit the market where it is in the most need. And that would be at about 1GB. 250 songs. Not too bad if its for $150, and has the class and style of an ipod.
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