Apple Watch: Expensive to Buy-Cheap to Produce

Apple profiteering on the sale of Apple Watch with a production cost, which is located at only a quarter of the retail price.

At least you can get away with to buy a Apple Watch abroad is about 2,300 kroner, but it only costs the Californian giant, Apple, in the region of 560 dollars to produce the cheapest sports Edition.

It shows a statement from analysis Institute IHS, which specializes in to separate products ad for then to estimate the cost of production of these.

Here you can tell that the cost for IHS to produce an Apple Watch is only 24% of the product’s retail price. It is the lowest ratio between production costs and the retail price of a Apple product inspected by analyseinstuttet. The other ranks for between 29 to 98 percent.

How to see the equation out

With 138 crowns are the most expensive component in Apple Watch display panel of Plastic OLED-type at the 1.34 “, as LG delivers. The display panel is on 272 x 340 pixels and is also equipped with Apple’s Force Touch technology, which draws a distinction between easy and hard pressure on the screen.

The next big expense cover over an extended range of components – the Court found, among other things, urremmen and various contacts and printed circuit boards tucked under the screen. It costs Apple about 110 kroner.

The processor is homemade and costs approximately 68 dollars – only a little bit higher than the 512 MB RAM and 8 GB of internal storage for 60 dollars on aggregate.

The remaining, and less expenditure covers of power management, audio, NFC, Bluetooth, WiFi, sensors and battery. The cost for these many small parts is estimated at just under 120 dollars.

Finally there is also 17 crowns per Apple Watch to manufacture them.

  • Screen panel from LG: 138 USD
  • Other mechanical parts: 110 DKK
  • Processor from Apple: 68 USD
  • Packaging: 60 us $.
  • RAM and internal storage space from Toshiba and Micron: 48 us $.
  • Power management: 37 USD
  • Sound, NFC, touch panel and other: $ 37.
  • Bluetooth and WiFi: 20 us $.
  • Accelerometer, ambient light sensor heart rate monitor and optical: 20 us $.
  • Manufacture: 17 USD.
  • Battery: 5 us $.