“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,” Adrian Kingsley-Hughes reports for ZDNet.
“The most expensive component is the LG display, which is estimated to cost $20.50, while the processor adds $10.20 and the memory a further $7.20,” Kingsley-Hughes reports. “That tiny battery is estimated to cost a mere $0.80, with the contents of the box – which includes a charger and spare wristband – adding $9.00 to the cost.”
Kingsley-Hughes reports, “Note that the analysis does not include logistics, amortized capital expenses, overhead, R&D, software, IP licensing and other costs.”
Read more in the full article here.
MacDailyNews Take: Nor does it contain significant marketing costs or, quite likely and rather importantly, accuracy:
Generally, there are 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. – Apple CEO Tim Cook, April 27, 2015
