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iSuppli: iPod shuffle production costs less than $22

Posted on Monday, April 13 2009 @ 22:27:13 CEST by

PMP Today reports the 3rd gen Apple iPod shuffle is the most profitable Apple device yet. Research firm iSuppli estimates the parts and packaging of the iPod shuffle are worth around $21.77, which is just 28 percent of the device's retail price.
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.
An overpriced MP3 player



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