Monday, September 26, 2005

BetaNews | Apple Maintains Margin with iPod Nano

BetaNews | Apple Maintains Margin with iPod Nano: "iSuppli dissected a 2GB iPod Nano and found $90.18 USD worth of parts. Combined with the $8-10 it costs to produce each model, the Nano ran about $100 USD to produce, said iSuppli. The player retails for $199 USD, meaning a profit margin of just under 50 percent."

It's interesting to see what Apple's costs are, but the margin quoted above is misleading since the retailers have to get their piece of the pie too. It's been a while since I've dealt with product that was sold through retail outlets, but in the past the Best Buy's and Target's of the world demanded at least 20 points of profit...

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