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Guts of the iPod

Rob Walker writes in today’s New York Times Sunday Magazine about Apple’s iPod.

‘Most people make the mistake of thinking design is what it looks like,” says Steve Jobs, Apple’s C.E.O.

”People think it’s this veneer — that the designers are handed this box and told, ‘Make it look good!’ That’s not what we think design is. It’s not just what it looks like and feels like. Design is how it works.”

In the most recent quarter, iPod sales represented about 7% of Apple’s revenue with gross margins running at just shy of 15%. Even though financially it’s a very small element of Apple’s overall business, the iPod continues to be a huge brand builder and sustainer for Apple.