Technobezz

How Much The Estimated Cost For Creating Apple Watch Sport 38mm?

Apple Watch is available for purchase, and the price starts at US$349, which is the retail price for Apple Watch Sport 38mm. But, how much the costs needed for Apple Watch manufacture? IHS has published the costs that Apple has in terms of hardware components. IHS reported that Apple spends 24% of the retail price to produce Apple Watch Sport 38mm and the cost is about US$ 83.70 with conversion cost.

“It is fairly typical for a first-generation product rollout to have a higher retail price versus hardware cost,” said Kevin Keller, senior principal analyst-materials and cost benchmarking services for IHS Technology. “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.”

These costs are related to hardware only, but we need to keep in mind that we do not know how much the company spends on research and development, Operating System, services, distribution, ads and so on. Here is the summary of the estimated costs for Apple Watch Sport 38mm components:

Apple Watch Sport Cost Summary

Direct Material Costs $ 81.20

(Component Costs)

Conversion Costs $ 2.50

(Assembly/Insertion/Test Costs)

Total Cost $ 83.70

(Direct Materials & Manufacturing)

Source: IHS Technology Apple Watch Sport 38mm (A1553) April 2015

The estimated component cost and exploded view by IHS via Business wire

How Much The Estimated Cost For Creating Apple Watch Sport 38mm?

 

How Much The Estimated Cost For Creating Apple Watch Sport 38mm?

More on this topic

Leave a Reply

No Responses

  1. Pingback: How Much Are The Apple Watch | Wearable Technology Blog - Wearable Technology Blog August 10, 2015
EA And Maxis are Rebranding The Sims 4
Samsung Galaxy S11 will have a Revolutionary Design
Apple iPhone SE 2
These are the phones Apple may release in 2020
Samsung Galaxy Note 10
Samsung Galaxy Note 10 Production Disrupted Due to Japanese Govt Restrictions
Android Apple Gaming How To Internet iPhone Personal Computers Review Site review The Top Best
Best Android VR games
Top Best Android VR games

Virtual Reality has lately gained massive attention and fame in the...

How to uninstall Windows 10 built-in apps

There are plenty of things you can do using Windows 10....

How to delete saved Windows 10 Wi-Fi networks

Is your Wi-Fi list filled and you need to add a...