Apple’s iPod Nano’s Huge Margin
iSupply took the tiny player apart and has determined it costs Apple just $90 in matrials, and $8 in labor to build the 2GB iPod Nano. The margins of course get fatter on the 4GB because labor costs stay fixed. This margin is consistent with Apple’s earlier iPodq.
Furthermore, Steve Jobs apparently won’t accept any product that has less then a 20% margin.