The Apple Watch Sport model has been deconstructed by analysts who say the sum of its parts are worth less than a quarter of its lowest retail cost.
The sportier, entry level edition costs upwards of $350 (£299), but IHS Technologies (via Zdnet) are guessing the components are only worth $83.70 (around £55).
According to the firm, who tore down the Apple Watch for the estimates, the display is the most expensive part at $20.50 (about $13.38) per watch, while each S1 processor probably cost Apple around $10.20 (£6.66).
The firm reckons the cost of the battery was just $0.80 (about 50p) which might lead some more sardonic folks to claim if it had spent more on the battery, maybe the thing would last longer than a day!
The 8GB of on-board storage cost $7.20 (around £4.70), while the power management features are listed as $5.50 (£3.62). The built in sensors and connectivity tech (such at Bluetooth, Wi-Fi and NFC) are listed as $3.00 (£1.95) a piece.
Under mechanical anomalies like switches and wristbands, IHS says Apple is paying out $16.50 (£10.77) a watch, while the box contents such as the extra wristband and inductive charger is estimated at $9 (£5.87) a watch.
Related: Apple Watch vs Android Wear
If the firm’s estimates are anywhere close to being accurate, then the Apple Watch will be one of the most marked-up tech products around.
IHS analyst Kevin Keller said: “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.”
For what it’s worth Apple CEO Tim Cook recently said he’d never seen a guesstimate that was “even close to accurate,” so there you have it.
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Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
Professional conduct
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
