The 38 mm Apple Watch Sport costs $350 - but what does it cost Apple to make one? The materials used? The manufacturing process? IHS, a research and analytics company that specializes in device "teardowns" has found out.
As it turns out, Apple spends one-fourth of the price tag of the cheapest Apple Watch to make it: $83.70.
The teardown of the Apple Watch Sport 38 mm by IHS Technology shows a bill of materials of $81.20 with the cost of production rising to $83.70 when the $2.50 manufacturing expense is added.
The most expensive component of the watch is the 1.34-inch touchscreen display provided by LG at $20.50. The cheapest is the 4.8 volt battery pack at less than $1. The second smallest expense is manufacturing the product itself, which costs the Cupertino-based tech giant $2.50. The second and third most expensive parts are the wristband and apps processor.
Apple believes the new product category created by the Apple Watch will be a majorly successful one.
"The response has been overwhelmingly positive," said Tim Cook, Apple CEO. "It's been really great to see the reaction of customers. We couldn't be happier."
The Watch went on sale and began shipping to customers just last week, so sales figures were discluded from the company's part quarter's financial statement.
