21
October
2005
|
01:47 AM
America/Los_Angeles

SVW scoop: iSuppli proves that we got the scoop on video ipod to use Broadcom chip earlier this year

iPod-Dissected.jpgThis is what iSuppli, a chip market research company found when it took apart the new video iPod:


"iSuppli Video iPod Teardown Reveals a Key New Supplier for Apple"


"El Segundo, Calif., Oct. 21, 2005-A dissection conducted this week by iSuppli Corp.'s Teardown Analysis service of the new video-capable iPod reveals an important new supplier among Apple' s semiconductor partners: Broadcom Corp., which is providing its new BCM2722 VideoCore Multimedia Processor to handle the video functionality."

"The Broadcom chip and other integrated circuits account for 17 percent of the $151 total Bill-of-Materials (BOM) cost for the 30Gbyte iPod, according to iSuppli. Other key cost drivers include the hard disk drive and the display, which together account for another 70 percent of the BOM."


Also:


Display supply troubles looming?

Other key cost drivers for the newest iPod include the hard disk drive and the display.

Apple has two sources for the drives: Toshiba Corp. and Hitachi Global Storage Technologies. However, Apple uses just a single supplier for the display, according to iSuppli sources. In comparison, Apple has three suppliers for the nano' s display, which has had some well-publicized quality issues. This sole sourcing, along with possible supply constraint for LED backlights, might result in shipping delays.

"Once again displays may be a source of heartburn at Apple," noted Andrew Rassweiler, manager of iSuppli's Teardown Analysis service.


Apple' s challenge
There is a lot on the line for Apple.
Once again the company is attempting to redefine a market pioneered by competitors. Other companies like Archos, Creative and Samsung have marketed video-capable players for some time. But none of those companies can match Apple> 's strength in content, which is key for the growth of video in a market better known for its connection to digital music.
By leveraging iTunes, its deals with content providers and its leading market position, Apple may reshape the market.
" We used to say that video-capable PMPs were a subset of the MP3 player market. But by 2007, we' ll be saying that audio-only MP3 players are a subset of the PMP market," Crotty said.
The iSuppli teardown analysis of Apple' s iPod includes a complete BOM, cost data, photos and descriptions of key components. A similar analysis is also available for the iPod nano and the iPod shuffle.