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Would be more interesting if they actually did some of these checks on different products from different companies. And *then* compared them, to get a picture of what the possible profit margins are.
 
New iPod Shuffle Contains $22 Worth of Parts[/url]

This is the most inane thing I've read all day (maybe all year). I believe the human body has about $1.97 worth of tangible value. Cremate a body and you get about 4 ounces of ash.
 
Would be more interesting if they actually did some of these checks on different products from different companies. And *then* compared them, to get a picture of what the possible profit margins are.

You will note that no one even thinks it is worth the time to tear down a Zune to see what it's composed of.
 
Look at everyone making excuses. The shuffle is still a crap player which I wouldn't even use if it were given to me for free. Seriously, at least put a button on it. I wouldn't buy it for $5. I can only imagine how horrible the sound quality on it is.

Really, the only ipod I'd consider is the ipod touch just for multimedia sake, but I have an iphone so there is no point. I'd honestly rather get an Archos 5 over an ipod touch but I heard archos has poor customer support. Though the ipod touch can sound better with 3rd party accessories. Yeah, never mind the whole archos 5 thing.

I really am quite disappointed with all of apple's ipods because of their poor sound quality compared to other manufacturers.

Mr Ballmer,

Thank you for your input.

Steve
 
I could build my own with old PC components for much more less:

redneck_pc.jpg

Hahaha... That's priceless.
 
C'mon, it's a $79 gadget. $22 in materials, plus R&D + software + marketing + retail margin... it's worth $79 hands down. If you wanna look at bizarre margins, check out all those damn iPod and iPhone skins, what's the profit margin on those... 99.5%?
 
Articles like this aren't a problem. It's the geniuses who have no understanding of business, manufacturing, or retail, thinking they are analyzing the article and determining Apple should only be selling them for $23.
 
Actually, you're wrong. Profit margin (or more correctly, gross profit margin, in this case) is defined as:

Profit Margin = (Revenue - Cost of Goods Sold) / Revenue

Here's a link that explains it:
http://en.wikipedia.org/wiki/Gross_profit_margin

What you are describing is mark up:
http://en.wikipedia.org/wiki/Markup_(business)

The poster you were correcting actually got it right.

Whoops, my bad. Should read that Wiki entry more thoroughly.

My apologies to lilgto64.

ft
 
Good for them!

When you've sold nearly 200 million of anything, I suppose you can cut deals with suppliers when ordering a lot of the components. Just a hunch.

I have no problem with paying $79 for an iPod that's 4GB (well, in theory at least -- I don't want this one) -- to me, that's quite a bargain. I paid $399 for a 5GB iPod on 11/12/01 and was very happy with the product and the price. It's all relative. To some, spending $79 on an iPod would keep them making their bills that month. To the wealthy, a sports car is a mere trinket.

In this case, I hope Apple sells just enough to realize that they need to go back to controls on the device.

In my mind, the 2nd generation Shuffle will always be the defacto standard of a screenless mp3 player. It didn't need to be changed. Why couldn't they have stuck 4GB into that form facto, ... ? You know it would fit.

:: grumble ::
 


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
Worth of parts? I dont suppose there were any workers in the factories they needed to pay, or shipping costs...
 
How much more is it for 8GB flash memory? Double the price? 3x the price? Any idea? If its a reasonable price for 8GB instead of 4GB, then I think that some people would pay at least $20-$40 more for it. Can't be too hard for Apple switch the size of flash memory(assuming its the same kind in a larger capacity). Nobody really needs more than 2,000 songs on there iPod at one time anyway...
 
wow, you guys are taking this stuff way too seriously. surely there must be more important thing to discuss about. to each their own.
 
I don't know why you are all complaining about the design of the new generation of shuffle, it's amazing!

I bought one and use it at the gym and I love it. It's suuuper small, you have to see it in person.

There is no need at all for buttons on the unit, the VoiceOver technology is great, it tells you your playlists and songs. Also, what I found out is that if you are in a playlist and activate VoiceOver, the name of the song comes up obviously, but then, if you click the volume up or down, it says the name of the next song in order. So essentially you can skip through your songs and stop at one when you hear the name of it.
 
Is this really surprising for a company that drops the price of the iPhone by $200 in just two months after release...

Yeah, I'm still bitter.
 
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