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New iPod Shuffle Contains $22 Worth of Parts
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Not a surprise, and I wouldn't be surprised if apple could get away with selling it for $60, but it's not like it matters much for me. As long as I can't play flac files on an ipod without modding it through some type of software, I won't buy one. And I hate the fact apple uses lower quality amps and dacs compared to competitors.
That's a toughie. There's not that many parts in there to begin with and most of it is made out of cheap plastic. Maybe multi-functions for less than 75$ would still be in that type of market.
Any fan boy here will tell you that you are paying extra for the apple experience of being smarter and cooler than people who don't use an iPod 
As stated: "iSuppli's calculations ... do not include research and development, manufacturing, distribution, and patent royalty costs."
Please! Steve Jobs just waives his magic wand and products appear!
But seriously, you are right as well as the fact that for them to make a profit they have to hike up the price. IF you add in all these costs, they will probably make around 10% profit. (just a guess, don't ask me to prove that)
So if an iPod can be made for $22 out of the $79 it is sold for from Apple, could I gather the parts and build the new Mac Pro for $1500 out of the $2500?
I am curious how much other Apple products cost to make compared to what you would buy them for at retail price.
I am curious how much other Apple products cost to make compared to what you would buy them for at retail price.
I don't care that the Shuffle costs $22 to make and sells for $79.
I do care that an iPod USB cable costs 50¢ to make and sells for $20. That's ridiculous.
I do care that an iPod USB cable costs 50¢ to make and sells for $20. That's ridiculous.
lol, way to gouge the consumers
i bet you if this was microsoft, everyone would be bashing...
oh how people love their apple
i bet you if this was microsoft, everyone would be bashing...
oh how people love their apple
BusinessWeek reports on a teardown of the new iPod shuffle by research firm iSuppli, revealing that Apple's diminutive player contains approximately $22 worth of parts.According to iSuppli's analysis, over half the cost comes from two Samsung components, the main controller chip and the 4GB of flash memory at approximately $6 each. The battery, capacitors, and resistors in the new iPod shuffle were also discovered to be remarkably small by industry standards.iSuppli's calculations consider only the actual parts of the device and do not include research and development, manufacturing, distribution, and patent royalty costs.
Article Link: New iPod Shuffle Contains $22 Worth of Parts
All the parts to make a Mercedes only cost $ 6,000, not including assembly. The paint is $ 16.50 and the solvent to clean up is not accounted for.
And it is amazing how the parts all fit together and are big or small.
Geez
Why doesn't this surprise me? It doesn't, not one bit.
I expect this is the same across the entire ipod range and the mac mini and so on. Maybe not so much the mac pro but it wouldn't surprise.
And this is what we mean by "Overpricing"
Granted they need to break even and make profit but this is just a rip off.
Then again, i knew that as soon as i saw the shots of the shuffle, just an overpriced grey plastic piece of crap which i would never order in my life.
I expect this is the same across the entire ipod range and the mac mini and so on. Maybe not so much the mac pro but it wouldn't surprise.
And this is what we mean by "Overpricing"
Granted they need to break even and make profit but this is just a rip off.
Then again, i knew that as soon as i saw the shots of the shuffle, just an overpriced grey plastic piece of crap which i would never order in my life.
If you really want to go through the looking glass think about this. The raw materials to make the parts to make the Shuffle cost less than the finished parts themselves when sold Apple. So not only is Apple over-charging the consumer but Apple itself is getting over-charged by its suppliers!
The conspiracy is even bigger than we initially thought.
Lethal
The conspiracy is even bigger than we initially thought.
Lethal
*shakes hands*
Oh how right you are.
This comment alone proves what hypocritical bastard fanboys are.
Your'e right, if this was microsoft the story would be sooo different but since it's Apple fanboys makes excuses such as "but look at the size of it guys!"
Thats a complete and utter crappy excuse, this mark up is just wrong.
And lets face it, the ipods aren't THAT awsomely built.
Apple squeeze all this hardware in to small cases and they break within the first year (like my ipod cassic) then apple try and rip you off by saying "oh hd fix will cost you £80 sir"
Sure...apple fans just looove to go trolling where the softies hang out so that we can complain about prices. Yup, that's the ticket.
But, back to reality, the bashing that you hypothesized could only possibly happen if Microsoft produced something worth coveting. That's the secret ingredient that brings trolls here, after all.
Not to mention doesn't Apple buy all these parts in MASSIVE bulk quantity that gets the big discounts that we could never get.
I'm just spit balling here, I know obviously we could never make something like that ourselves unless we are engineers and product assemblers with lots of expensive equipment. And yes of course all the r&d, marketing, packaging, etc. etc.
It is interesting to know, but pointless. I do like seeing these things taken apart though, I like to see how things work etc.
You know what this reminds me of. Henri Matisse (Wiki it yourself) did an exquisitely elegant drawing of a woman's back that managed to capture the energy and sensuality of the nude with only a few lines. He was visiting the gallery where it was being exhibited when a visitor rather sarcastically asked him "well how long did it take you to draw that?" Matisse's response: "About 25 years".
If you really want to go through the looking glass think about this. The raw materials to make the parts to make the Shuffle cost less than the finished parts themselves when sold Apple. So not only is Apple over-charging the consumer but Apple itself is getting over-charged by its suppliers!
The conspiracy is even bigger than we initially thought.
Sure, and if you want to dig all the component materials out of the ground you could get them all for free. Of course you'd have to pay for the shovel.
Please please stop forgetting the support costs. Try to imagine who many people actually involved in e.g. returning faulty device.
P.S. Also, the iSuppli analysis disregards QA. It is generally considered part of manufacturing. It costs money to QA. And presence of QA means that some percentage of produced items are discarded as rejects right after assembly line.