Apple Watch Manufacturing Price Only $84

  • Dela Dem
  • May 8, 2015
  • 0

Are you being ripped off by Apple? Apparently the new Apple Watch that is selling for hundreds of dollars only costs $83.70 to make.

According to IHS Technology the manufacturing costs for the Apple Watch Sport 38mm is $83.70 where as the retail price is $349.

The breakdown is $81.20 for the materials that make up the watch and a $2.50 manufacturing expense.

AppleWatchSport-640x359.jpg

via pastemagazine.com

New York Daily News says compared to the Apple’s iPhones, the Apple Watch has the lowest ratio of hardware costs to retail.

Other Apple products are at about 29 to 39 percent of the suggested retail price, whereas the Watch is at 24 percent.

Senior principal analyst-materials and cost benchmarking services for IHS Technology, Kevin Keller says:

“It is fairly typical for a first-generation product rollout to have a higher retail price versus hardware cost. 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 other new Apple products, and could be of great benefit to Apple’s bottom line if sales match the interest the Apple Watch has generated.”

 

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