A new teardown of the iPod touch shows that it is not as similar to the iPhone as one might think, according to the research firm iSuppli. While cosmetically and functionally identical to the iPhone in many regards, such as in its "springboard" touchscreen interface, the iPod touch shows internal evidence of using a different design with some advancements. The player has a single printed circuit board (PCB) instead of two, for instance, onto which the touchscreen circuitry has been moved as well. Similarly, new components have been put in the Touch in service of its Wi-Fi functions.

Other changes are merely adapted to the Touch's unique shape, which is thinner and shorter than the iPhone. These include 0201 diodes and passive components in 01005 enclosures, both used for the player's Wi-Fi module.

iSuppli notes that the Touch is otherwise 90 percent identical internally, using for example the same $13.19 integrated circuit from Samsung. The parts in an 8GB iPod touch cost approximately $149.18 to Apple, meaning that before research, marketing or labor concerns, the $299 retail price is 92.9 percent higher than manufacturing costs.

It is believed that approximately 8.5 million first-generation Touches will have been built between the third quarter of 2007 and the same time in 2008, at which time Apple is expected to launch a successor. This may be separate from a simple memory upgrade.