September 7, 2005 5:35 PM PDT
Apple's iPod costs likely went up--in a flash
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By using flash memory rather than mini hard drives in the iPod Nano music players, Apple likely increased its own component costs, said analysts.
Right now, 1GB of flash memory in the volume market costs about $45, according to both Semico and iSuppli. Thus, the 2GB iPod Nano, which sells for $199, contains around $90 worth of flash, while the $249 4GB version has about $180 worth of flash, said Semico's Jim Handy.
"They might have been able to get something for $40, but that's still $160 worth of memory," he said.
By contrast, mini hard drives with the same amount of storage costs about half as much, said iSupply's Nam Hyung Kim. Typically, hard drives provide more storage for less money than flash. Flash, however, provides better performance and takes up less room.
Some experts have predicted that the rapidly declining prices of flash, combined with its ever-increasing densities, will allow it to replace hard drives in many applications. Others, however, have noted that hard drives decline in price just as fast and add capacity often at even a faster rate. Also, major manufacturers of both flash and hard drives often lose money.
Apple likely got a substantial discount from its flash supplier, which Kim and others say is Samsung. Still, the price for flash is likely higher. Samsung's margins for flash in the second quarter came to around 45 percent, Kim said. Thus, Samsung would have to sell the memory at a loss or close to break even to give Apple a price that would be equal to a price for hard drive storage.
Nonetheless, Kim said that Samsung, or any flash memory maker, would have strong motivations to give a customer like Apple large discounts. An oversupply of flash memory currently exists; thus, a contract with a customer that will consume quite a bit of factory output insulates a manufacturer. The 45 percent margins also give Samsung lots of wiggle room.
"Samsung can also probably raise prices" in the future because its competitors can't provide the same volumes, Kim speculated. "Apple will probably never go back to hard disk drives."
See more CNET content tagged:
flash memory,
Samsung Electronics,
Apple Computer,
Apple iPod Mini,
music player





why they are partners on LCDs & Flash RAM. When this article said
that we have probably seen the beginning of more Flash RAM in
Apples lineup, you are going to see it next appear in the
PowerBooks as a faster hard drive, improving the already quicks OS
X boot times further. RAM HDs are but a few years away. And
hopefully by about this time we might see Windows boot on a
notebook in under a minute too.
DISCLAIMER
That said computer was rarely on the internet so it did not recieve many patches. Even so, I still have that computer now (Compaq 1200 Cel 600, garbage I know) and I have not formatted it since 2000. Not by choice though as the CDROM died three years ago....
<< Marco >>
words are uttered, but somehow these products end up hits in the
marketplace. What you geniuses seem to have forgotten is that the
market dictates failure/success not the ramblings of some tech
"journalist". It doesnt have a radio, or a voice recorder, were early
ipod complaints, and look at how the market reacted to lacking a
FM radio and voice recorder, people that bought competing players
sure showed Apple.
fact that sometimes an Mp3 player is just an Mp3 player, and
just an Mp3 player, seems to be what the public wants. iPod's
share of the market would seem to indicate this.
Why does it always have to have more, better, cooler gadgetry
than the next guy just to be accepted as "as good".
Sometimes you just want some meat and potatoes, leave the
frosting to someone else.
I realise that's not its purpose, and I also realise that the storage is what makes the cost so high.
Other people probably have different needs, but for me, I only listen to about 2 or 3 CDs worth of music a day - sometimes the same ones for a few days in a row, so a $100 mp3 player is more than enough.
Still it looks bloody sexy and if I had the kind of disposable income that let me spend $200-$250 on an mp3 player I'd get one..
A small (like <2.5") screen for video output is doing your brain a disservice.
if AAA batteries are too thick, then a new standard size for thiner (likely to be flat) batteries should be developped.
I won't buy it for this reason.
If your iPod dies to early, you didn't treat it properly. Same thing goes for laptop batteries or camcorder batteries, you have to drain them out of power ever once in a while, not keeping them 100% charged all the time.
ipod nano to the ipod mini when the latter was introduced. My
guess is the ratio was very similar to that of the current nano.
If your iPod dies to early, you didn't treat it properly. Same thing goes for laptop batteries or camcorder batteries, you have to drain them out of power ever once in a while, not keeping them 100% charged all the time.
Its a consumer device. Get over it...
Besides, this article falls under the "Personal Tech" category, so it doesn't have to be about computers, networks, or otherwise anyhow.
- The screen is too small on the nano.
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by lingsun
September 9, 2005 2:33 PM PDT
- I have a full sized iPod and I can see the screen quite well when it sits on my desk at work. I couldn't hardly read the screen on the mini. I think the screen on the nano is just going to be too small unless it's in my hand.
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Reply to this comment
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- Just don't buy a nano then.
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by
September 12, 2005 3:50 AM PDT
- You have a full size iPod and like the size of the screen, so why do
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See all 29 Comments >>you complain about screen the nano? It's not like they replaced the
full size iPod with the nano. What did you expected?