Apple's Watch has the lowest ratio of hardware costs to retail price across any Apple phone, 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.
The Apple Watch Sport 38mm costs US$349 and the teardown shows a bill of materials of US$81.20 with the cost of production rising to US$83.70 when US$2.50 in manufacturing expense is added, IHS said.
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