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Apple Watch has lowest ratio of hardware cost to price: IHS teardown

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

By: Reuters |
May 1, 2015 1:05:35 pm
Apple Watch, Apple, Apple Watch specs, Apple Watch price, Apple Technology, Apple Watch is seen in an Apple Store. (Source: Associated Press)

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 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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