The $349 USD Apple Watch Sport Costs $84 USD to Make

According to a recent study by research firm IHS, the Apple Watch Sport costs the least amount to manufacture out of any Apple products relative to its sale price. Priced at $349 USD, the 38mm wearable costs a mere $84 USD to produce, which is a fourth of the gadget’s retail value. However, this shouldn’t be too much of a surprise as “It is fairly typical for a first-generation product rollout to have a higher retail price versus hardware,” according to Kevin Keller, a senior principal analyst at IHS. A breakdown of the hardware shows that the 1.34-inch LG touchscreen display is the most expensive component at $20.50 USD, whereas the 3.8 volt battery pack is the cheapest part costing less than $1 USD. Despite these figures it must be noted that these price estimates by IHS do not take into account the R&D, marketing, logistics and intellectual property costs. To get a full rundown on how much each part costs head over to CNN.