
The source say however that for Apple to make a 1GB Nano successful, it would have to be priced around $149.99, which brings the question of whether Apple can make a good profit from it. "I think the pricing may be tough at $149, but Apple has proven that customers are willing to pay for style over storage capacity," said one Wall Street analyst. "Apple's profitability should improve as the price of NAND flash has been falling and from what I understand, the recent $1.25 billion in deals with 5 [NAND flash] suppliers through 2010 are favorable for Apple. $149 for a 1 GB Nano sounds economically feasible and may in fact be very profitable."
Source:
Apple Insider