Apple cuts BOM cost for new iPod nano
By James Carbone -- Purchasing, 10/18/2007 6:00:00 AM
Apple has reduced the bill of materials and made some changes to its supplier roster in its latest version of iPod nano, according to researcher iSuppli.
The new device recently introduced is virtually a completely new design, re-uses almost no components and has a number of new suppliers compared to the previous model, a product dissection conducted by iSuppli's Teardown Analysis service reveals.
The 4MB device has a BOM amounting $58.85, 18.5% lower than the $72.24 BOM of the previous version.
The estimate is limited to costs for components and other materials used to construct the product. The estimate does not include costs for manufacturing, software, intellectual property, accessories and packaging. The BOM also does not include research and development costs, since such data cannot be derived from a teardown and component analysis.
Component suppliers making their nano product line debut in the latest version include Micron Technology, Dialog Semiconductor and Intersil Corp., while Synaptics returns to the platform after an absence. Previous suppliers NXP Semiconductors and Cypress Semiconductor Corp. were dropped from the latest version of the product.
"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," says Andrew Rassweiler, senior analyst and teardown services manager for iSuppli.
Micron was the most notable addition to the nano.
| Component Type | 4GByte Model | 8GByte Model |
| Source:iSuppli Direct materials only: manufacturing, accessories, IP, software, R&D, etc. are not included |
||
| Flash memory | $24.00 | $48.00 |
| Display | $10.60 | $10.60 |
| Core video processor/microprocessor | $8.60 | $8.60 |
| Electromechanicals | $2.44 | $2.44 |
| SDRAM | $2.72 | $2.72 |
| Mechanicals | $2.33 | $2.33 |
| Misc. components | $1.85 | $1.85 |
| Battery | $1.40 | $1.40 |
| Power management IC | $1.38 | $1.38 |
| Video Driver | $0.85 | $0.85 |
| CODEC | $0.90 | $0.90 |
| Mixed signal array/Touch wheel controller | $0.65 | $0.65 |
| Buck regulators | $0.15 | $0.15 |
| Buck regulators | $0.40 | $0.40 |
| Utility flash memory | $0.59 | $0.59 |
| Subtotal - direct materials | $58.85 | $82.85 |
Now Playing:
Apple’s iPod Shuffle costs $21.77 to make
04/14/2009iPod Shuffle Costs $22
04/30/2009Samsung supplies NAND to Apple's iPod nano
10/20/2005
