Apple Watch (Sport 38 mm) Components Reportedly Cost Just $81.20; Lowest Hardware Cost to Price Ratio Yet
Apple Watch has the lowest ratio of hardware costs to retail price across any Apple product, according to a new report. Components of the basic model (Sport 38 mm) Apple Watch cost a total of $81.20.
The preliminary estimate by research firm IHS suggested that the hardware cost of an Apple Watch Sport model was about 24 percent of the suggested retail price compared with 29-38 percent for the iPhone maker's other products.
According to the report, the most expensive component is the display which costs $20.50 for the Ion-X version.
Notably, a few days ago, Apple's CEO Tim Cook addressed the reports of cost breakdowns and claimed that so far none of the breakdowns he's seen about any of their products is close to what the reality is, UberGizmo noted.
The Apple Watch Sport 38 mm costs $349 and the teardown shows a bill of materials of $81.20 with the cost of production rising to $83.70 when $2.50 in manufacturing expense is added, IHS report added.
