We all know that the purpose of business is to make money. No one begrudges a company their profits. We are happy to pay for their wares. That all being said we have heard whispers that Apple Watch’s components only cost them a total of $81.20 plus $2.50 manufacturing costs. What? Yes the Apple Watch cost a purse pinching grand total of $83.70.
Shocking? Well yeah. So feel free to take a seat whilst I continue. The bearer of this news comes in the shape of IHS Technology. They stated that the Apple Watch has the highest markup of all Apple’s products so far. They continued by adding that the most expensive Apple Watch component is the display which cost Apple $20.50.
We must admit, that once the news had settled we wondered, how accurate are IHS’ estimates? True or not, with the Watch available from $350, Apple will still smile all the way to the bank because people are always happy to buy Apple. They are excited with the product, the service, so why question the price?
Another reason for tiny cost could be that Apple most likely placed large quantity orders which usually means that the price they are charged for their components would be much less. So the Apple Watch cost $83.70 to make, I am sure that the rest of the costs are down to the developers. They are most likely being paid handsomely. Also, the Apple Watch is Mr Tim Cook‘s first solo project so I am confident that he will also be reaping the financial benefits should the Apple Watch become the success they hope it will be.