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Apple Watch has lowest hardware cost to price: IHS

Apple Watch has lowest hardware cost to price: IHS

The hardware cost of an Apple Watch Sport model was about 24 per cent of the suggested retail price compared with 29-38 per cent for the iPhone maker's other products.

The hardware cost of an Apple Watch Sport model was about 24 per cent of the suggested retail price compared with 29-38 per cent for the iPhone maker's other products. (Photo: Reuters) The hardware cost of an Apple Watch Sport model was about 24 per cent of the suggested retail price compared with 29-38 per cent for the iPhone maker's other products. (Photo: Reuters)

Apple Inc's Watch has the lowest ratio of hardware costs to retail price across any Apple phone, according to a preliminary estimate by research firm IHS after a teardown study.

The hardware cost of an Apple Watch Sport model was about 24 per cent of the suggested retail price compared with 29-38 per cent 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.

(Reuters)

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Published on: May 01, 2015, 9:17 AM IST
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