iSuppli's teardown analysis of the sixth-generation iPod Nano analyzed the device's feature set and Bill Of Materials (BOM) and found that the manufacturing cost of the new Nano is one of the lowest ever.
According to the company's research, "[O]nly the fourth generation product had a less expensive BOM at the time of its introduction, at $40.80."
"[T]he small, square, touch-screen media player costs [Apple] $45.10 to manufacture; $43.73 in materials and $1.37 in manufacturing costs," writes Boy Genius Report. "The most expensive components on the device are the 8GB of NAND Flash memory ($14.40), the display ($11.50), and the Samsung processor ($4.95)." An 8 gigabyte version of the iPod Nano sells for $149 and a 16 gigabyte version costs $179.
Eliminating the scroll wheel and camera--both featured on fifth-generation Nano devices--allowed lower manufacturing costs. "Instead of piling on features, as so many brands do with their latest products, Apple with the sixth-generation iPod has maintained or even removed some attributes in order to fit the form factor and function desired," said Andrew Rassweiler, iSuppli's teardown services manager. "This has enabled Apple to offer the smallest iPod including a touch screen, while keeping component costs to a strict budget."
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