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Firm takes iPod Nano apart, discovers truth

Bill of materials is $90, iSuppli claims
Thu Sep 22 2005, 16:07
MARKET RESEARCH firm iSuppli has taken apart an iPod Nano, and claimed it shows Apple has made some "surprising choices" in the components it chose.

The firm offers a "teardown analysis" which it said showed the device uses a Portalplayer 5021C system on a chip and a Cypress CY8C21434 for the circuitry behind the "click wheel" interface.

This, said iSuppli, is surprising because Sigmatel rather than Portalplayer had dominated the flash memory MP3 player segment. Apple uses the Sigmatel STMP3550 chip for MP3 processing in its iPod shuffle. But the 5021C is not a standard Portalplayer part.

It said that these, along with other ICs (integrated circuits), account for 77 per cent of the $90.18 total bill of materials (BOM) cost of the Nano.

The NAND flash memory in the device is made by Samsung, and iSuppli estimates it got a big discount from the Korean giant, making the twin NAND flash parts cost only $54.

Isuppli said the iPod Nano costs $400 when you buy it. It's selling a report with the complete BOM, it said. µ



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