Apple Watch has lowest hardware cost to price: IHS




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(Reuters) – Apple Inc’s Watch has the lowest ratio of hardware costs retail price across any Apple , according to a preliminary estimate by research firm IHS after a teardown study.

The hardware cost of an Apple Watch Sport model was about 24 percent of the suggested retail price compared with 29-38 percent for the iPhone maker’s other products, IHS said on Thursday. (bit.ly/1zuOZMq)

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The Apple Watch Sport 38 mm costs $349 and the teardown shows a bill of materials of $81.20 with the cost of rising to $83.70 when $2.50 in manufacturing expense is added, IHS said.