6 Replies Latest reply: Oct 13, 2005 4:49 AM by carl wolf
amsdc Level 1 (125 points)
I've heard that for a 4GB Samsung chip, which the Nano uses is only about US$135. Obviously then there is the LCD screen and other stuff. But I was wondering, does anybody know roughly how much it costs to make a 4GB Nano? (not including the pay for the labour, just the actual parts)
  • Stuart Guthrie3 Level 4 (3,500 points)
    I don't know how much it costs for all of the individual parts but after it's all put together other aspects come into play as you mentioned such as: hiring staff, promotional material, etc. I would imagine that Apple are giving it to us as cheaply as they can without losing any profit (just my opinion).

    Stu
  • TemjinX2 Level 1 (15 points)
    I remember i read a cnet article about it. Samsung charges $54 for the 2gb memory modules. I'm guessing they charge $108 for the 4gb modules. This is very underpriced and could only be offered by Samsung because there the largest manufacturer of memory in the world. They added it up and the total cost in parts is about $90 excluding labor for the 2gb nano. The nano is apple most profitable product at the moment. Job has a reputation of keep the profit margain 20% on his products. The Nano is over 50%.

    *update

    It was a article from businessweek not cnet.
    Here's the link

    http://businessweek.com/technology/content/sep2005/tc20050921_4557.htm

    Let me try to find the article.
  • Stuart Guthrie3 Level 4 (3,500 points)
    WOW!!! I take back my words from before.

    Stu
  • TemjinX2 Level 1 (15 points)
    sorry for the earlier misinformation guys. i just found the link. My edited post is the correct costs based off the article.

    Samsung is offering apple incredible price, that has many of its competitors angry. The korean FTC is investigating Samsung to see if they violated any fair practice laws since the price they're offering is so low.
  • TemjinX2 Level 1 (15 points)
    Here's the FTC investigation link

    http://news.yahoo.com/s/mc/20051007/tc_mc/applesamsungfacingprobebykoreanftc

    Then again, even if samsung is forced to raise the price. There is enough margain on the nano not to raise current prices and still make profits.
  • carl wolf Level 6 (14,625 points)
    amsdc,
    "not including the pay for the labour, just the actual parts"
    I'm sure that's how you price homes: a pile of lumber here, a pile of bricks there. There's a lot more to the construction price of the Nano, than just the parts. You should read the article. With everything included, the margin is in the 20% range, as are the other iPods.