We’ve seen what the inside of an Apple Watch looks like.
Now we have a better idea of how much it costs to make each device.
Apple (AAPL, Tech30) sells its cheapest smartwatch, the 38mm Apple Watch Sport for $349.
But what about the materials used to manufacture it? And the production cost?
Just a fourth of that retail price, or $83.70 altogether.
That’s according to IHS (IHS), a research and analytics company specializing in gadget “teardowns.”
Compared to other Apple products IHS has analyzed, the Apple Watch Sport costs the least amount to make as a share of its sale price. But this isn’t a surprise.
“It is fairly typical for a first-generation product rollout to have a higher retail price versus hardware cost,” Kevin Keller, a senior principal analyst at IHS, said in a statement.
The most expensive part of the watch is the 1.34-inch LG touchscreen display. It’s $20.50.
The cheapest component is the 3.8 volt battery pack, which costs less than $1.
Manufacturing is the second smallest expense at $2.50, and the wristband and apps processor are the second and third most expensive parts of the watch.
IHS’ estimate does not include costs related to research and development, marketing, logistics, intellectual property, and other overhead capital.
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