iPhoneForums.Net News Team
- Jun 18, 2010
- Reaction score
BGR reports today that IHS iSuppli has provided some new estimates about how much the Apple Watch costs Apple to make, revealing that the Apple Watch Sport costs approximately $83.70 to make, which represents 24% of the suggested retail price of $349.
“It is fairly typical for a first-generation product rollout to have a higher retail price versus hardware cost,” said IHS Technology analyst Kevin Keller. “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 the other new Apple products, and that could be of great benefit to Apple’s bottom line if sales match the interest the Apple Watch has generated.”
BGR says that the profit margins will be even higher for Apple on the stainless steel Apple Watch and the gold Apple Watch Edition, because the internal components are exactly the same in both the high-end and the cheaper models, making all the more profits for Apple.
Source: Apple Watch bill of materials cost 83.70 BGR