Apple Watch Sport costs less than $83 for all of its components

5/01/2015 Afnan Ali Awan , Apple Watch , Tear down 0 Comments

On Monday Tim Took told investors to not even try guess how much Apple Supply Chain costs are, but that's doesn't stops some analyst from trying to predict the price of the components of the Apple Watch. IHS Technology disassembled the 38mm Apple Watch Sport and according to them the $350 Apple Watch Sport costs less than $83 for its components.

During the disassemblage IHS also discovered that the Apple Watch may have the lowest hardware costs when compared to the retail price any other Apple product. IHS also estimated that the MRSP ratio of the other Apple is somewhere between 24% to 98%, but Apple Watch lands on 24% ratio which is extremely low.

Even though that cost doesn't the money Apple loses on faulty components, software, Logistics and all other costs which are associated with the Apple Watch. According to IHS the most expensive hardware piece of the Apple Watch is the tiny LG OLED Display which costs around $20.50. The S1 processor is for about $10.20 and the 512MB of RAM accounts for $7.20. 
According to the experts at IHS the cheapest component is the tiny battery (for which fans are extremely worried) which is a hell of a lot of cheap at only 80 cents per piece.

Source: Cult of Mac