Apple Watch costs under $85 to make
That shiny new Apple Watch Sport may have set you back $350, but from a hardware and manufacturing standpoint it only cost Apple $83.70.
According to a teardown carried out by IHS Technology the actual hardware costs of the 38mm Apple Watch Sport are only about 24 percent of the manufacturer's suggested retail price, giving it the lowest hardware costs compared to retail price of any Apple product.
http://www.zdnet.com/article/apple-watch-costs-under-85-to-make/?tag=nl.e232&s_cid=e232&ttag=e232&ftag=TRE6a12a91
NYC_SKP
(68,644 posts)Or even the Fitbit Flex, at $99 the cheapest of the lineup, which probably costs under $10 to make, a 10:1 ratio.
The iWatch is closer to 4:1, just over.
DJ13
(23,671 posts)Hoyt
(54,770 posts)greyl
(22,990 posts)onehandle
(51,122 posts)'...software, IP licensing and other costs.'
These costs can make the costs of the raw material seem pretty puny, which is why these 'estimates' have little to do with reality.