It Costs Less Than $84 to Make an Apple Watch Sport Edition
The finest luxury Gold Edition smartwatch by Apple comes at a whopping amount of $17,000. The lowest version starts at $349, and the price goes up with the higher the model you choose. But do you know the heavily tagged Apple Watch costs just 24% of the retail price to the company?
The research firm IHS did a teardown of the Apple Watch Sport and discovered that one unit of the Sport is worth 24% of what buyers pay for it. It is less than one-fourth of the price and costs the Cupertino-based tech giant a mere $84 (approx.). The firm quoted it as the lowest price set by the company for any hardware as other Apple products are traded much higher than their manufacturing cost.
As per IHS estimates, the 38mm Watch has the OLED display as its priciest part that is coated with Ion-X cover glass. The whole arrangement of display and protection provided by LG costs $20.50. The second most expensive part of the watch is the A1 processor manufactured at the company’s plant itself. All other components cost below $10, except the electro-mechanical apparatus.
As the cost is estimated on the basis of teardown, the expenses such as licensing, logistics, R&D, and other noticeable costs have not been taken into account.
The expense table of the 35mm Apple Watch Sport by IHS is given below: