• The Price for Apple to Produce an Apple Watch is Reportedly Pegged at $83.70

    by
    Anthony Bouchard
    Published on 2015-04-30 08:53 PM
    19 Comments Comments


    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:

    Originally Posted by IHS iSuppli
    It is fairly typical for a first-generation product rollout to have a higher retail price versus hardware cost. While retail prices always tend to decrease over time, the ratio for the Apple Watch is lower than what we saw for the iPhone 6 Plus and other new Apple products, and could be of great benefit to Apple’s bottom line if sales match the interest the Apple Watch has generated.
    Sources: IHS Suppli via MacRumors
    This article was originally published in forum thread: The Price to Produce an Apple Watch is Reportedly Pegged at $83.70 started by Anthony Bouchard View original post
    1. Categories:
    2. iPhone,
    3. iOS,
    4. Apple,
    5. Accessories
    Comments 19 Comments
    1. TDH Advocate's Avatar
      TDH Advocate - 2015-04-30, 09:01 PM
      When don't they make a huge chunk of money. They don't care about the buyers, only how much money is going into their own pockets.
    1. bPatrik's Avatar
      bPatrik - 2015-04-30, 09:18 PM
      This dont count with the developement costs, so dont worth much.
    1. vcf's Avatar
      vcf - 2015-04-30, 09:50 PM
      Also this does not include taxes, shipping if order online and sales team and all the people on the frontline
    1. javiert30's Avatar
      javiert30 - 2015-04-30, 10:12 PM
      Anyway I feel raped... and that doesn't include the vaseline cost...
    1. Silverado1987's Avatar
      Silverado1987 - 2015-04-30, 10:37 PM
      Quote Originally Posted by bPatrik View Post
      This dont count with the developement costs, so dont worth much.
      Quote Originally Posted by vcf View Post
      Also this does not include taxes, shipping if order online and sales team and all the people on the frontline
      Both of you are correct. Sure Apple prolly could dump the price down to $200 and still be fine. Plus if you notice it's not really the watch themselves it's the bands I think are rip offs.
    1. vcf's Avatar
      vcf - 2015-04-30, 10:45 PM
      Quote Originally Posted by Silverado1987 View Post
      Both of you are correct. Sure Apple prolly could dump the price down to $200 and still be fine. Plus if you notice it's not really the watch themselves it's the bands I think are rip offs.
      Yep it the brand but the quality makes the brand name. All I know is I love the one I have on my wrist right now. Battery life is good for my usage. I would never play a game on it.
    1. politicalslug's Avatar
      politicalslug - 2015-05-01, 03:47 AM
      And to think, Wall Street insisted that Apple's 40% gross margins weren't sustainable.
    1. docmagoo2's Avatar
      docmagoo2 - 2015-05-01, 11:26 AM
      A lot of you seem to think that apple are there to help the ordinary man. Theyre not. They're a big multinational company. Their goal is to make £ / $/ ¥ and if they can sell a product for several hundred more dollars than it costs to make and still have people buy it then certainly they're going to do it. Things are much cheaper in the USA than in the UK, not just apple products, another prime example being Abercrombie products, they sell for the same in £ as they do in the states in $ (ie if $69 it'll be £69 here) and people STILL buy them. Apple and companies like them sell by the strength of their name, and we may moan about cost, but plenty of people will purchase the products. Humans are stupid and the companies rely on this....
    1. tha1youshouldfear's Avatar
      tha1youshouldfear - 2015-05-01, 05:43 PM
      When they are being made in China at Foxcon for only 2$ an hour
    1. sane's Avatar
      sane - 2015-05-02, 10:38 PM
      I put the apple Watch 42mm stainless steel version at US$73.83.

      That's how much my CC was charged when I placed my order.
    1. NewD's Avatar
      NewD - 2015-05-04, 02:17 PM
      Quote Originally Posted by sane View Post
      I put the apple Watch 42mm stainless steel version at US$73.83.

      That's how much my CC was charged when I placed my order.
      What are you talking about? All Apple prices are identical around the world. No one pays less than anyone else unless you're buying used on eBay.
    1. King_O_Hill's Avatar
      King_O_Hill - 2015-05-05, 05:38 AM
      Quote Originally Posted by NewD View Post
      What are you talking about? All Apple prices are identical around the world. No one pays less than anyone else unless you're buying used on eBay.
      Get your head out of your...

      Start here and then do your own research.

      Apple Watch Prices Around The World - News by Design
    1. NewD's Avatar
      NewD - 2015-05-05, 01:37 PM
      Quote Originally Posted by King_O_Hill View Post
      Get your head out of your...

      Start here and then do your own research.

      Apple Watch Prices Around The World - News by Design
      Well this would be unprecedented for Apple then. Price parity has been at the core of their business model since their inception.. Cook must be wanting to break new ground. Incredible.

      And I still don't believe Sane, from post #11, bought any version of the Apple Watch for $73 as he stated.. That's who I responded to. And your article you linked, King, proves that. [emoji6]
    1. Splatty79's Avatar
      Splatty79 - 2015-05-05, 02:41 PM
      Quote Originally Posted by NewD View Post
      Well this would be unprecedented for Apple then. Price parity has been at the core of their business model since their inception.. Cook must be wanting to break new ground. Incredible.
      Um....no.

      Apple Store prices have ALWAYS been much higher here in Australia than the U.S. store.
    1. bbrks's Avatar
      bbrks - 2015-05-05, 02:44 PM
      Don't you think people, that different prices have to do something with different import duties, VAT and ..........
    1. King_O_Hill's Avatar
      King_O_Hill - 2015-05-05, 02:47 PM
      Quote Originally Posted by NewD View Post
      Well this would be unprecedented for Apple then. Price parity has been at the core of their business model since their inception.. Cook must be wanting to break new ground. Incredible.

      And I still don't believe Sane, from post #11, bought any version of the Apple Watch for $73 as he stated.. That's who I responded to. And your article you linked, King, proves that. [emoji6]
      Not unprecedented at all. It has always been this way. It may have been a core "Dream" to have price parity, but it hasn't been there for the phone at least since the iPhone 4.

      I don't think he got it that cheap, but it's possible that the preorder CC approval was for that amount until it had posted.
    1. NewD's Avatar
      NewD - 2015-05-05, 05:28 PM
      Quote Originally Posted by King_O_Hill View Post
      Not unprecedented at all. It has always been this way. It may have been a core "Dream" to have price parity, but it hasn't been there for the phone at least since the iPhone 4.
      Well, I've been wrong before... but from my "Apple historian buff" perspective, I believe you are incorrect, my friend. When you factor in the exchange rate and VAT's for each country - the retail price for an iPhone 6/6+ is practically identical in the US, England, Australia, etc..(haven't researched China). Apple has always set the wholesale and retail price point on all its products since Steve came back in the late 90's.. Occasionally Best Buy/Target run an internal deal for $50 off.. But there's nearly zero wiggle room.

      But even if we end up agreeing to disagree.. we can agree a 10-15% price swing around the world on the Watch is unprecedented with Apple. We can also agree - no one got an AppleWatch for $73.
    1. Bo's Avatar
      Bo - 2015-05-06, 06:07 PM
      How fun. A new game.
    1. NewD's Avatar
      NewD - 2015-05-06, 06:52 PM
      Quote Originally Posted by blkcadi View Post
      How fun. A new game.
      Nah.. Brian's well versed in this stuff too. We've just been reading different stuff.. Not worth a 'brew-ha-ha'..

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