
The Apple Watch Sport, which begins at a retail price of $349.00 on Apple's Web site and continues to go up from there depending on the model, reportedly only costs around $83.70 to produce, as new details from IHS iSuppli reveal. The cost includes the components to produce the device, as well as the manufacturing cost per device.
The firm has broken down costs to produce various sensors and electronics used in the device, such as the ambient light sensor, accelerometer & gyroscope, optical pulse sensor, processor, touch screen controller, audio controller, memory, battery, enclosure, and much more. Above, you can see a chart from IHS iSuppli breaking down various parts and pieces of the Apple Watch.
There is no doubt that Apple is making a huge chunk of profit on each Apple Watch sold; this figure is skeptically considered a 'fair' estimate, but is fairly accurate. Notably, Apple is producing a larger profit margin selling the various Apple Watche models than many recent iPhones, as IHS iSuppli points out:
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