Did you ever wonder how much money these companies make when you buy that new hard dive based MP3 Player? Well here is a look at the costs associated with the 20GB iRiver H320. Material for the player itself costs $118.87 while the packaging costs $14.07. Putting it all together with labor, overhead, and other costs will add up to $2.05. The total cost to produce the iRiver H320: $134.99. When they sell the device direct at $299.99 they make a nice profit of $165 per unit. But you have to also consider that when sold in retail outlets part of that $165 will be the retailers’ profit.
For the most part all manufacturing and material costs will be with in the same ballpark. However, the costs may vary a bit by manufactures. For instance, Apple’s cost on packaging will probably be higher due to the materials and special designs they use.