2GB iPod nano Only Costs $100 to Make

After disassembling the iPod nano, iSuppli discovered something that's bound to make iPod nano owners angry. The entire cost of materials inside the nano adds up to a measly 90.18 and if you add 8 dollars per unit for labor, Apple still makes $100.82 per 2GB iPod nano sold.

Other interesting discoveries include Apple's first home built clickwheel, thus dropping it's previous supplier Synaptics. iSuppli also noted that the nano includes a PortalPlayer5021C audio controller chip, a Wolfson WM8975G codec part and a Cypress CY8C21x34 used to manage the input from the clickwheel. The key to Apple's savings is apparently the Samsung NAND Flash, the 2GB nano includes two 1GB flash memory chips adding up to only 54 dollars.

View: iSuppli Corporation

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