This is nothing new, some experts have fun reviewing each new product to evaluate the rate of production. The Apple Watch could not escape this, and rather the Sport model, which is the subject of a proper review. Results : Apple Watch Sport will cost Apple less than $85.
- Also read: All about the Apple Watch, the Apple connected watch
$83.70 is the full production cost of the Apple Watch Sport. According to the company IHS iSuppli, who had fun reviewing the connected watch from Apple. To achieve this result, the company calculated the price of each component that makes up the smartwatch.
However, the components of the watch are not the only factor taken into account when calculating the IHS iSuppli. The charger, the user manual, everything in the box of the Apple Watch Sport has been taken into account.
So at the bottom of the box, What would cost Apple the most, would be the screen. At $20.50, it represents 24.50% of the total cost of production. Next will be the processor ($10.50), RAM ($7.20) and finally the battery ($5.50). For the remaining components, it is necessary to add $ 16.50 per product. It is necessary to add the bracelet and the contents of the box to reach $ 83.70.
If the firm’s estimated figures are correct, Apple will then generate a margin of $265 Sold by Apple Watch Sport, the first model (38mm) is priced at $349 in the United States.
Be careful though. This estimate does not take into account many parameters salaries, R&D, marketing, inventory management, shipping, etc. In any case, even taking these different elements into account, Apple is certainly doing pretty well.
Especially since the firm is known to optimize its costs to create substantial margins. Adopting another strategy does not show such results. Obviously it works, the initial sales forecasts are very promising. So why deprive yourself of it?
