Sixth-Gen iPod Nano Material Cost Estimated At $43

The material cost incurred by Apple for making one 8 GB sixth generation touch screen iPod Nano has been estimated at $43.73.

According to market research firm iSuppli, it was found after a complete strip-down of the device that Apple spent around $43.73 in making the new 8 GB iPod Nano, which is retailed at $149.

iSuppli said that the new iPod Nano has the second lowest bill of material (BOM) compared to the rest of the iPod product line. The fourth generation iPod had a BOM of $40.

Andrew Rassweiler, the tear down services manager at iSuppli, said in a statement: “Instead of piling on features, as so many brands do with their latest products, Apple with the sixth-generation iPod has maintained or even removed some attributes in order to fit the form factor and function desired.”

When manufacturing costs are taken into account, the sixth generation iPod Nano costs around $45, which makes up for 30 per cent of the retail price.

According to iSuppli, after the third generation iPod Nano, the average BOM has accounted for 33 per cent of the retail price.