If you’ve been asked how much the components of Apple’s first smartwatch will cost, we already know how much it costs Cupertino to make an Apple Watch Sport model, which has a retail value of $350. According to the analysts at IHS Technology, the cost of its components is only $83.70 . The difference is obvious if we compare it with its final price, but we must evaluate other aspects to know the real cost of each model of the Apple Watch.
The Watch Sport is the product with the lowest hardware costs that Apple has launched so far and is that the costs of the 38mm model of the simplest smartwatch are around 24% of the selling price, when the normal range is between 29 and 38%.
Of the $83.70 that the Sport model costs the apple company, the most expensive component of all is the LG display , which is estimated to be worth $20.50, adding the $10.20 for the processor and $7.20 for the memory. The battery is one of the cheapest components and is estimated to cost Apple as little as $0.80. The entire contents of the smartwatch box are worth $9, including the charger and replacement strap.
It’s true that technology is getting cheaper as the years go by and this Sport model will probably cost Apple much less next year than it does now. But other aspects of this new product must be valued, because in addition to the components, we must take into account the money invested in R&D during the three years of development, the cost of manufacturing the watch in the factories, the cost of logistics to bring it to the stores and many other aspects that make the product more expensive.
Tim Cook himself is not convinced by the prices given to the components of Apple products and for him it is often not the real value.
You can’t value the price of a new Apple product just by the cost of its components, but the truth is that the final price has been quite low and, moreover, as months go by that product reduces its price even more, being then when the company gets the highest profit for each unit sold. We have known this data thanks to Cult of Mac.
Do you really think the Watch Sport is worth only $83.70? You can leave your opinion and impressions in the comments.