Teardown of Apple's Tiny iPod Shuffle

BUSINESS WEEK -- There's not much on the inside of the iPod Shuffle, as a teardown analysis of the device by market research firm iSuppli has found. Privately held iSuppli takes consumer electronics apart in order to estimate how much they cost to build. And while a teardown doesn't account for the costs of design, software, manufacturing, or shipping, these cost estimates help fill in the blanks toward estimating the profit on each device sold.

All told, the cost of the shuffle's components, the headphones, and the packaging it ships in comes to $21.77, according to iSuppli's estimates. That's about 28% of the device's $79 retail price. The smaller the component cost as a percentage of price, the higher the potential profit. This suggests the per-unit profit margin on the shuffle is higher than on other iPod models.

The component cost for the first iPod touch released in 2007, for instance, amounted to about $147, or about 49% of its $299 retail price. The component cost of the third-generation iPod nano, also released in 2007, amounted to about 40% of its retail price.

Biggest supplier? Samsung

See previous CD post on the iPod teardown.

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Teardown of Apple's Tiny iPod Shuffle

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