Apple Watch has lowest hardware cost to price -IHS

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Updated: May 01, 2015 5:12 PM

The ratio of harware costs to retail price of Apple watch is cheapest compared to any Apply phone.

apple watch, apple incA customer presents his Apple Watch after buying it at a store in Paris, France, April 24, 2015. (Reuters)

Apple Inc’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 percent of the suggested retail price compared with 29-38 percent 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.

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