The $349 Apple Watch costs less than $84 to make

[Anthea]

Business Insider

The Apple Watch costs less than $84 to make

The total cost of the components in the Apple Watch is less than $84, according to a preliminary estimate by research firm IHS after a teardown study.

If accurate, this gives the Apple's Watch has the lowest ratio of hardware costs to retail price across any Apple product.

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, IHS said on Thursday.

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 said.

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