A $349 Apple Watch costs only $84 to make
A $349 Apple Watch costs only $84 to make
Apple's Watch has the lowest ratio of hardware costs to retail price across any Apple phone, according to a preliminary estimate by research firm IHS.

Bengaluru: Apple's Watch has the lowest ratio of hardware costs to retail price across any Apple phone, according to a preliminary estimate by research firm IHS after a teardown study.

The hardware cost of an Apple Watch Sport model was about 24 per cent of the suggested retail price compared with 29-38 per cent for the iPhone maker's other products, IHS said on Thursday.

The Apple Watch Sport 38 mm costs $349 and the teardown shows a bill of materials of $81.20 with the cost of production rising to $83.70 when $2.50 in manufacturing expense is added, IHS said.

Apple Watch Sport IHS Top Cost Chart (Graphic: Business Wire)

Apple Watch Sport IHS Teardown (Graphic: Business Wire)

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