iPod Shuffle Bill of Material Costs (Just) $21.77

It is interesting to look at the bill of materials to see how much the components of a gadget cost. In the case of the latest iPod Shuffle (3rd Gen) this comes at $21.77, with the packaging. While this is only 28% of the retail price, we think that it does not account for the totality of the “real” cost of the device, including development, promotion, stocking and so on… it is an indicator that margins aren’t bad. While some are complaining that Apple makes “too much” money in this arguably (ridiculously) simple product, the simple fact is: people are buying it.