“The Apple Watch is out, and we’re seeing the first analyst estimates of some of its key costs,” Hristo Daniel Ushev writes for Mobile Forward. “The variation in these early estimate is huge. It’s so big that, even if some estimates aren’t perfect, others are, to use a Tim Cook phrase, ‘in another universe.'”
“Here are two examples. These firms looked at the (1) hardware and (2) manufacturing costs of the Apple Watch. IHS’ estimate for the 38mm Sport version: $83.70.
TechInsights’ estimate for the 42mm Sport version: $138.50. Can both be correct?” Ushev writes. “No. ‘But they looked at different-sized models’ one might say. Nah; that’s almost irrelevant.”
“From my experience working with product and cost experts at a well-known mobile device company, I can tell you: Apple Watch does not cost $84 in hardware and manufacturing. It costs meaningfully more. Probably more than 2X that,” Ushev writes. “And I’ll tell you why. Maybe I’ll even give you my estimate.”
Read more in the full article – recommended – here.
MacDailyNews Take: Ushev’s estimate is likely much closer to the truth than $84.
[Thanks to MacDailyNews Reader “Jax44” for the heads up.]
Related article:
IHS estimates Apple Watch Sport costs just $83.70 to make – April 30, 2015