According to a teardown analysis of the third-generation iPod shuffle, the total cost of the device is roughly 28% of its retail price. Citing analysis from market research firm iSuppli, BusinessWeek reports that the total cost of the shuffle’s components, its remote-laden headphones, and its packaging comes to just $21.77. iSuppli found that Samsung supplied both the shuffle’s controller chip, which costs roughly $6, and the 4GB of flash memory, which also costs roughly $6; iSuppli analyst Andrew Rassweiler notes that Apple is likely using flash memory from Toshiba and Hynix Semiconductor as well. “It’s almost like six dollars worth of flash memory tied to some flash and a battery and not much else,” Rassweiler said. “It’s very basic and downsized.” The device also includes a lithium ion battery that runs $1.20, which Rassweiler describes as “the smallest we’ve ever seen.” Other component suppliers include On Semiconductor, NXP Semiconductor, and Texas Instruments.
iSuppli: iPod shuffle 3G costs $21.77 to make
Charles Starrett was a senior editor at iLounge. He's been covering the iPod, iPhone, and iPad since their inception. He has written numerous articles and reviews, and his work has been featured in multiple publications.