Apple Watch Sport Costs $83.70 To Make

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An analysis of the Apple Watch Sport components fixed manufacturing cost in $83.70. They were slow to appear and the first reports of estimated costs Apple Watch, but at last we have here. The usual company responsible for performing this type of work, IHS iSuppli has just published an estimate of the approximate Watch Apple components prices, and, if true, would mean that we are facing the apple product with hardware costs more lower margin which no benefits-to date.

The 38mm Apple Watch Sport model components would cost approximately $81.20. To this we should add about $2.50 manufacturing cost, and we will get a total of $83.70 per unit manufactured Sport. Given that this model sells for $349, the difference is remarkable.

Recall, there are many factors that are not taken into account when performing these studies, and often show only a small part of what influences when determining the final price of a product. For example, do not take into account the investment in R & D, salaries of employees, logistics, marketing, among others.

Of all the components that make up the Sport Watch, Ion-X OLED screen would be the most expensive of them, reaching the $20.50. Would follow closely the own processor S1 with a cost of $10.20. IHS iSuppli has refused to discuss the price of making Apple Watch and Watch Edition, although both may differ quite cost Sport model due to construction material and display their boxes.

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The Apple Watch has 512MB of RAM and 8 GB of internal storage. As a result, these $83.70 assume only 24% of the final sales price, whereas in previous devices has come to vary between 29 and 38%. Interestingly, in the last meeting of financial results, Tim Cook announced that Apple Watch had the lowest profit margins of other product lines, which completely conflicts with recent data.

Moreover, precisely Cook took the opportunity to clarify that the real costs of their products differ greatly from those shown in this type of reports made by third party companies, as if the CEO himself came come the imminent publication of the report of IHS.

Finally, MacRumors clarified the issue of RAM and Apple Watch confirms that incorporates 512 MB, a similar memory that were in devices like the iPhone 4. We still need to know the approximate costs 42mm model, so we will remain alert to possible future reports.

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