iPod Shuffle Only Costs $21.77 to Make

iPod Shuffle Only Costs $21.77 to Make

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An iSuppli teardown estimates the cost of the shuffle's components, the headphones, and the packaging it ships in at $21.77.

Business Week says 'that's about 28% of the device's retail price. The smaller the component cost as a percentage of price, the higher the potential profit. This suggests the per-unit profit margin on the shuffle is higher than on other iPod models. The component cost for the first iPod touch released in 2007, for instance, amounted to about $147, or about 49% of its $299 retail price. The component cost of the third-generation iPod nano, also released in 2007, amounted to about 40% of its retail price.'

The main application chip used in the device is made by Samsung. Other suppliers include Toshiba, Hynix Semiconductor, On Semiconductor, NXP Semiconductor, and Texas Instruments.

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iPod Shuffle Only Costs $21.77 to Make
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ol - April 13, 2009 at 2:50pm
you have to take into account the money it cost to have the engineers design the device, the components, the software, the headphones, etc. There are people that need to get paid so that you can get those devices in your hands. If you don't pay them, who will manufacture the ipods then?