iSuppli has taken the new iPod nano and torn it apart to see how much it costs to build the device. According to the estimates offered by iSuppli the new nano has the second lowest cost to build at launch of any iPod ever, only the fourth generation device was cheaper to build at launch.
According to iSuppli, the new nano costs Apple about $43.73 to build whereas the fourth generation pmp cost $40.80 to construct. The BOM was kept down by ditching the camera that the last nano had in favor of the touchscreen. iSuppli reckons the reason storage didn’t double on the new nano compared to the previous is due to the prices of NAND stabilizing.
The lower cost to build should mean that Apple gets higher profit margins on the new nano. The cost to build the nano is estimated to be $1.37 making the total cost with parts and construction $45.10. Those numbers don’t take into account the cost of marketing for the devices which will add a bit more to the actual costs Apple has per unit. The memory is the most costly part of the device at $14.40 with the touchscreen costing $11.50.