Analysts at iSuppli believe the £186 (excluding VAT) 30GB new video-capable iPod costs $151 (£85) to build.
The device retails at $299 in the US, the equivalent of £168 at today’s exchange rate.
iSuppli has disassembled the gadget to find out what components it contains. A report on Business Week reveals that the device carries a new chip that’s dedicated to video.
This chip comes from a new face in the iPod ecosystem, Broadcom, but PortalPlayer and Texas Instrument have similar chips that may appear in future iterations.
Old faces PortalPlayer and Wolfson Microelectronics provide the audio chips used.
The decision to use a dedicated video chip caused an iSuppli analyst to say: “Right now, Apple is keeping the functions separate. Over time, you'll see more chips that do everything. But now it's probably more cost effective for Apple to do it with separate chips."
The report observes that the new iPod’s display comes solely from a Toshiba-Matsushita joint venture. Business Week believes supply of these is “already constrained”. Optrex, Sharp Electronics, and Toshiba-Matsushita supplt screens for iPod nano.
Apple and its suppliers tend to try to keep manufacturer identities hidden.