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I would hope it costs Apple less to make.
Making the shuffle for $59 dollars would be too expensive normally for a $99 retail. Don't forget they have marketing, support, shipping etc. Also, they would be selling at a discount to retail stores and markets.
I would expect Apple would get a better price on it's huge quantities of product purchases, so I'm betting they are delivering a finished product for less than $40 (but I'm not writing the checks, so it's only a guess).

As an afterthought, maybe it's a loss leader for more itunes music purchases.
Posted by: el1jones   Posted on: 02/25/05 You are currently: a Guest | Members login | Terms of Use
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40% Spent on Innovation  nucrash | 02/25/05
Are you sure?  NonZealot | 02/25/05
Well they were pretty quick with that Tsunami  Laff | 02/25/05
And you turn down raises?  j.m.galvin | 02/25/05
Unlike oh say Pharmacutical Drugs the iPod  Laff | 02/25/05
I dissected mine too  Michael Kelly | 02/25/05
Already!?! BUMMER dude!  Laff | 02/25/05
Well hopefully the Apple store will fix it  Michael Kelly | 02/25/05
Loose USB plug  j.t.neuteboom@... | 02/26/05
Economic 101  mabricen | 02/25/05
I would hope it costs Apple less to make.  el1jones | 02/25/05
loss leader  TWRX | 02/25/05
You've got it the other way around  tic swayback | 02/25/05
Who cares? Eveybody buy Vily, buy Apple stock  mlindl | 02/25/05
They need to take into consideration...  olePigeon | 02/27/05
Ok, let's just toss out...  BitTwiddler | 02/28/05
Big Assumption on $59  mrlinux | 02/28/05

What do you think?

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