Electronics Production | September 28, 2010
New iPod nano with BOM of USD 43.73
The 8GByte version of the latest iPod carries an estimated BOM of USD 43.73, states market researcher iSuppli. With manufacturing costs of USD 1.37, this adds up to 30% of its retail price.
This gives the sixth generation product the second-lowest BOM of all members of the iPod line. Based on iSuppli teardowns of the low-end versions of all six iPod generations, only the fourth generation product had a less expensive BOM at the time of its introduction, at USD 40.80. For example, the latest nano omits the camera found in the previous-generation product and uses just 8Gbyte of NAND flash memory for music storage—the same as the fifth-generation nano. With the move to a touch screen interface, the sixth-generation nano also eschews the click wheel used in previous models, instead implementing an advanced, intuitive interface in a product with a near-wristwatch form factor of just 1.48 by 1.61 by 0.35 inches. This image has a zoom-function. Memories of Toshiba and Samsung The most expensive subsection of the new nano is the memory system, featuring 8Gbytes of NAND flash from Toshiba and 512Mbits of mobile Double Data Rate (DDR) DRAM from Samsung. At a cost of USD 14.40, this section represents roughly 33% of the total BOM cost Next most expensive is the display/touch screen module, priced at USD 11.50, or about 26% of the total BOM. Third on the cost list is the applications/core processor system, featuring a Samsung-manufactured chip, at a cost of USD 4.95, or 11.3% of the BOM. Fourth most pricey is the user interface section, priced at USD 3.49, or 8% of the total BOM. The touch screen controller chip was supplied by Cypress. Another notable win in the user interface section is the Microelectromechanical System (MEMS) accelerometer from STMicroelectronics. This part, which sports the smallest form factor of any accelerometer yet seen in an iSuppli teardown at just 2 by 2 millimeters, supports the nano’s pedometer function.