A $349 Apple Watch Only Costs $83.70 To Make: IHS

A $349 Apple Watch Only Costs $83.70 To Make

(Reuters) - Apple Inc'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. (http://bit.ly/1zuOZMq)

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

(This version of the story corrects the first paragraph to say Apple phone, not Apple product, after IHS amends report)

(Reporting by Supantha Mukherjee in Bengaluru; Editing by Kirti Pandey)

Before You Go

1
BMW i Remote
If you're lucky enough to be an owner of either the BMW i3 or i8 then you're in for a treat. BMW has confirmed that the i Remote app for iPhone will come with its own Apple Watch app. Offering the same key remote functions as the iPhone app you'll be able to check charging, unlock the doors, hoot the horn, flash the lights and more.
2
Instagram
That's right, Instagram is on Apple Watch. This skimmed down version of the full app lets you browse through images, like posts and share them with friends.
3
Barclays
More an extension than a dedicated interactive app, the Barclays Apple Watch is a simple and secure way of seeing your balance across all your accounts. It'll also re-route all notifications that you go either via the iPhone app or via SMS through the watch as Watch notifications.
4
W Hotels
Using GPS your iPhone will let your Apple Watch know when you've arrived at a W Hotel. If you have a room booked it'll even pop up with an option to turn your Apple Watch into your door key. All you have to do is press 'Unlock Your Door' and you're good to go.
5
Uber
Keeping at the cutting edge is Uber. You can request a cab, see when it's ready and get home all through the Uber app on Apple Watch. You'll never have to take the iPhone out of your pocket.
6
American Airlines
Using GPS, the Apple Watch knows when you're arriving at the airport. As soon as you arrive it'll bring up your boarding information and even let you pass through security using the boarding card on your Watch.
7
Contacts
Push down on the Digital Crown and it'll bring up your favourite contacts. From there you can make calls, send images and even send them your heartbeat.
8
Messaging
Contact over the Apple Watch couldn't be simpler. You'll be able to draw shapes, send emojis and even send your heartbeat.
9
Making Calls
Using the Apple Watch's built-in speaker you can make, and answer phone calls without ever having to pick up your iPhone.
10
Djay
That's right, your favourite music mixing app is now compatible with Apple Watch. Naturally being able to do an entire set on your iPhone is no longer hip enough, so they've moved it from the hip to the wrist. You'll look like you're doing literally nothing but then again, isn't that kind of the point?
11
Misfit Minute
12
1Password
1Password, the app that replaces your brain is now on Apple Watch. Using a simple four-digit passcode it'll give you access to your key passwords, so if you suddenly forget your Facebook login or Amazon details your Watch will be on hand to help out.
13
Citymapper
Is there an app more useful than Citymapper? As we discovered only the other week, there probably isn't. Well now you won't even have to take your phone out for it to babysit you from A to B.

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