icost

Posted on June 26, 2008
Filed Under computing, culture, music, politics | 1 Comment

So how much does it actually cost to make an ipod? The question is more complex than you might think…

The retail value of the 30-gigabyte video iPod that the authors examined was $299. The most expensive component in it was the hard drive, which was manufactured by Toshiba and costs about $73. The next most costly components were the display module (about $20), the video processor chip ($8) and the controller chip ($5). They estimated that the final assembly, done in China, costs only about $4 a unit.

One approach to tracing supply chain geography might be to attribute the cost of each component to the country of origin of its maker. So $73 of the cost of the iPod would be attributed to Japan, since Toshiba is a Japanese company, and the $13 cost of the two chips would be attributed to the United States, since the suppliers, Broadcom and PortalPlayer, are American companies, and so on.

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One Response to “icost”

  1. tim hall on June 26th, 2008 6:47 pm

    more to the point, what does it cost to make a bjork film clip?

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