Teardown Reveals Nano Component Changes, Cost Reductions
"The changes in components have resulted in significant cost reductions in the nano design, allowing Apple to offer a product that is less expensive to build and that has enhanced features compared to its predecessor," said Andrew Rassweiler, senior analyst and teardown services manager for iSuppli.
Specifically, iSuppli estimates the bill of materials (BOM) at $58.85 for the 4 GB nano and $82.85 for the 8 GB version. Apple sells the 4 GB model at $149 and the 8 GB model at $199.
As usual, the estimate is limited to the BOM and does not include costs for manufacturing, software, intellectual property, research and development, accessories and packaging. Still, the estimate can provide some insight into Apple's profit margin on a given product.
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(View all)"As usual, the estimate is limited to the BOM and does not include costs for manufacturing, software, intellectual property, research and development, accessories and packaging. Still, the estimate can provide insight to how large Apple's profit margin will be on a given product.
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So the message here is that manufacturing, software, intellectual property, R&D, accessories, and packaging are either minor costs or can be directly inferred from the cost of the components?
All I can tell from this data is that Apple's profits will be somewhere between zero and the retail price less the cost of the components. In other words, still a guess.
If I were an Apple competitor, however, this would be incredibly frustrating...I'm sure no one can build these for anything near Apple's price.
All I can tell from this data is that Apple's profits will be somewhere between zero and the retail price less the cost of the components. In other words, still a guess.
You can't tell net profit margin from this info, but you can tell that Apple is building these way cheap, and selling them for a healthy price on the market, so it's safe to say that a good chunk of that ~$100 markup is profit.
My question is: is that cost for a single component? Because otherwise, SINCE Apple purchases millions of components AT ONCE, will get 50% price cuts or even more!!! So, WHAT ARE THE REAL TRUE MATHS???
I'm sure they take Apple's discount on flash, and their unrivaled economies of scale, into account.
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