It is not news that some specialists have fun to dissect each new product to evaluate its stroke production. The Apple Watch is no exception and it is specifically the Sport model that has been a good dissection standing. Result: Apple Watch Sport would cost less than 85 dollars to Apple.
83.70 dollars, the exact cost of production of the Apple Watch Sport according to the firm IHS iSuppli that had fun dissecting the watch connected Apple. To achieve this, the firm has calculated the cost of each component constituting the smartwatch.
But the components of the watch are not the only elements taken into account in the calculation of IHS iSuppli. Charger, manual, in short everything that is found in the Apple Watch Sport box was taken into account.
Thus in the case, which would be more costly to Apple would be the screen. At $ 20.50 it would therefore represent 24.50% of the total production cost. Then come the processor ($ 10.50), RAM (7.20 dollars) and finally the battery ($ 5.50). For the rest of the components to be added 16,50 dollars per product. To reach 83.70 dollars must then add the bracelet and the contents of the box.
If the estimated figures of the cabinet are correct, then Apple would release a margin of 265 dollars by Apple Watch Sport sold, its price in the US $ 349 being displayed for the first model (38 mm).
But be careful. This estimate does not take into account many parameters like salaries, R & D, marketing, inventory management, transportation etc. etc. In any case, even if these elements are taken into account, Apple wills certainly doing quite well.
Especially as the company is known to optimize its costs in order to generate high margins. It does not would display such results by adopting a different strategy. Obviously it works, the first sales estimates are very promising. So why not use it?
Apple Watch Sport: production cost is only $ 80
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