Apple To Earn An Extra $3 Profit On Every iPod Nano Sold This Quarter

According to some brainy analyst over at Pacific Crest, Apple will earn an extra $3.00 profit on every iPod Nano it sells this quarter (up to March) thanks to the falling price of NAND flash memory.

The price of 2 GB chips fell 27% in January, and 4 GB and 8 GB chips are a cool 33% cheaper, leading to Apple’s rise in profits on the Nano. No increase in profit is expected of the iPod Shuffle however, as 1 GB NAND flash prices remained fairly stable in January.

According to the analysts this translates into a 1-penny increase per-share for Apple for every 5 million iPod Nano’s it sells. To me and you, that’s an extra $15 million profit for every 5 million Nano’s shifted.

This bodes well for the idea of shifting the entire iPod range over to NAND flash, as Apple can increase its already enviable margins as well as the iPod battery life. We all win... It’s just that Steve Jobs wins more than you do.