Originally Posted by Brian SD
According to iSuppli, the iPod 80gb hard drive costs apple $73. The costs of flash memory are decreasing so much that it's predicted in three years, a 128gb flash drive will cost Apple about the same.
I should probably make some more clarifications.
I was just searching up iSuppli and came across:http://forums.ilounge.com/showthread.php?t=86960
which brought me to:http://www.pcworld.com/article/id,11...1/article.html
To clarify, I was only referring to parts cost - I consider the sell costs (marketing, advertise, related overhead) as part of the brand equity costs (and I think it is justified considering the manner in which Apple maintains their image). It follows I was not including software costs (because software isn't parts).
Also, my prof did not mention which iPod it was. It is likely he was refering to the smallest iPod (by harddrive)
In 2005, it is estimate in that article the iPod Shuffle costs aprox $59 @512mb.
According to iSuppli,http://www.efluxmedia.com/news_iSupp...285_08794.html
The 4 gig is approximately $60
However, the problem is still that these articles don't really delve deep into the supply-chain and added valued.
This is crux:
(for the 30 gig iPod)
According to the authors' estimates, the $73 Toshiba hard drive in the iPod contains about $54 in parts and labor. So the value that Toshiba added to the hard drive was $19 plus its own direct labor costs. This $19 is attributed to Japan since Toshiba is a Japanese company.
And if they go down into the $54, how much would the hard-drive really be worth?
And if they did this for the other products involved in producing the iPod?
I'm not sure.
I suspect $20-30 may have been rather accurate for the smaller ipods and I suspect I sounded like I was inferring that all iPods have the same costs (which is not true). I can't see the costs exceeding $100 for the 30 gig Ipod.