Firm offers teardown analysis of all three new nano models
AppleInsider Staff
Analysts for Wedbush Morgan Securities estimate that Apple's gross margins could be as high as 50 percent on its new line of aluminum anodized iPod nano digital music players.
"One year ago, the high-end Nano (still at the $249 price point) contained about $150 worth of NAND flash versus the high-end device of $92 today," he wrote. "That savings of $58 is driving an additional 23-points of gross margin [which is] good news for Apple versus its high-end Nano one year ago."
In his analysis, Berger points out that Apple is attempting to keep more secrets this time around with three suspiciously 'Apple'-marked chips inside the players.
"There were no 'Apple' marked chips in the first-generation Nano," he wrote. "We suspect one of these chips is the Samsung ARM processor (part #337S3291 8701), the socket formerly supplied by PortalPlayer. [...] We do not see the Wolfson audio driver chip or the Philips power management chip that was in the first-generation Nano, though Apple could have re-marked either of those chips." Indeed, a subsequent teardown by iSuppli confirms the three chips as belonging to Samsung, Wolfson and Philips, respectively.
Those changes aside, Berger said there are several chips that are either the same or similar to those employed in the first generation iPod nano, including Samsung’s 256MB SDRAM (K4M56163PG), Linear Tech’s USB power manager/battery charger, National Semi’s step down DC-DC switching regular (JM62SE), SST’s program flash memory (SST89WT800A) and Cypress’ click wheel interface controller (CY8C21434LKXI). He also noted that Hynix is co-supplying flash memory for the players alongside Samsung.
Based on his analysis, Berger estimates Apple's bill-of-martials (BOM) cost to be $74.90 for the 2GB model, $97.90 for the 4GB model and $143.90 for the 8GB model. Without factoring other costs such as development, manufacturing, freight, and marketing, the analyst said his BOM totals imply gross margins of 49.7 percent, 50.8 percent and 42.2 percent, respectively.
Berger also recently dissected Apple's updated fifth-generation video iPod players.
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23 Comments
I still believe that Apple is holding margins high to give them more stratigec options. People are still buying the things now, so there is not reason to drop prices. If a compeditors puture product actually comes in with serious competition, Apple can drop prices instantly to undercut and steal the press. They are in a good position!
I still believe that Apple is holding margins high to give them more stratigec options. People are still buying the things now, so there is not reason to drop prices. If a compeditors puture product actually comes in with serious competition, Apple can drop prices instantly to undercut and steal the press. They are in a good position!
Yes, and right now the only potential competitor is ZUNE, which is priced even higher.
Yes, and right now the only potential competitor is ZUNE, which is priced even higher.
Careful, don't underestimate the fact that Bill Gates can be a sneaky bastard. He's got the money to blow on getting into the market (see xbox), don't be surprised if he sells a seriously underpriced product with exclusive functionality to a microsoft download site. Imagine if Zune were a hundred bucks cheaper than a comparable iPod, how many people would buy one (especially new users who don't already have an iPod). Microsoft could take the same approach as the video game industry, losing money on the hardware, and making it back on the software (in this case WMA files). They've got the cash to do so, and maybe their management is up for the risk...
Actually Gizmodo says the final Zune price is USD 229.99. Which is quite a bit cheaper then the equivalent iPod, not that that has mattered before.
One thing I note (though I do see it come up once in a while) is that Apple prices 249, 299, etc... They don't add the .99 cents. Subtle, but nice.
Actually Gizmodo says the final Zune price is USD 229.99. Which is quite a bit cheaper then the equivalent iPod, not that that has mattered before.
One thing I note (though I do see it come up once in a while) is that Apple prices 249, 299, etc... They don't add the .99 cents. Subtle, but nice.
Wow, if Microsoft does price the Zune at $229.99, then it might get a bigger slice of the mp3 market. Granted, I believe it will cannabalize mp3 makers that have partnered with Microsoft in the past. Time will tell if they start cutting into iPod sales.