Apple Watch Costs $85 to make: IHS
The Apple Watch Sport will cost you about $350 to purchase but its internal parts cost less than $85, IHS estimates. Of course, this estimation analysis does not include logistics, amortized capital expenses, overhead, R&D, software, IP licensing and other costs.
In any case, IHS Technology took the new gadget appart and concluded that its actual hardware costs are just $83.70 -- about 24 percent of the manufacturer's suggested retail price. The research firm estimates that the hardware cost to MSRP ratios for other Apple products to be in the range of 29 to 98 percent.
The most expensive component is the LG display, which is estimated to cost $20.50, while the processor adds $10.20 and the memory a further $7.20. The small battery inside the device is estimated to cost $0.80, with the contents of the box adding $9.00 to the cost.
"It is fairly typical for a first-generation product rollout to have a higher retail price versus hardware cost," said Kevin Keller, senior principal analyst-materials and cost benchmarking services for IHS Technology. "While retail prices always tend to decrease over time, the ratio for the Apple Watch is lower than what we saw for the iPhone 6 Plus and other new Apple products, and could be of great benefit to Apple's bottom line if sales match the interest the Apple Watch has generated."
Seperately, ABI Research has also dismamtled the Apple Watch and has provided a picture of its PCB along with information about its basic chips.