As usual, the teardown process of newly released Apple devices takes place and we’re now reading reports from various analysts. The teardown looks at the components and estimates how much each piece costs the tech giant to manufacture. The cheapest Watch model, which costs $350, has been looked at by IHS Technology. Analysts there are saying that the Apple Watch sport version only costs Apple about 24 percent of its retail price to make, which works out to $84. Typical costs hover between 29 and 38 percent of the suggested retail price. An analyst for IHS said in a press release that “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.”
CEO of Apple, Tim Cook, argues the numbers: “Generally, there’s cost breakdowns that come out around our products that are much different than the reality. I’ve never seen one that is anywhere close to being accurate.”
