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Teardown Reveals Nano Component Changes, Cost Reductions

Research firm iSuppli has torn down the latest iteration of the iPod nano to find hefty component changes.

"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.