Six generations on, and the cost of materials has decreased dramatically from the first-ever iPod Nano, which cost $89.97—for just 2GB. The 8GB version that came out recently has parts totaling $43.73.
Even the second-gen iPod Nano, which was double the capacity of the first one, cost a whopping $72.24. Of course, this was back in the day when a 4GB iPod Nano cost $199 upfront, compared to the $149 an 8GB-er costs now.
iSuppli has listed manufacturing costs at around $1.37, and while this is the first model to contain a touchscreen component, the screen and Toshiba-originated memory together costs just half of the total materials cost. [iSuppli]