Apple Watch costs under $85 to make

[Lodestar]

That shiny new Apple Watch Sport may have set you back $350, but from a hardware and manufacturing standpoint it only cost Apple $83.70.

According to a teardown carried out by IHS Technology the actual hardware costs of the 38mm Apple Watch Sport are only about 24 percent of the manufacturer's suggested retail price, giving it the lowest hardware costs compared to retail price of any Apple product.

http://www.zdnet.com/article/apple-watch-costs-under-85-to-make/?tag=nl.e232&s_cid=e232&ttag=e232&ftag=TRE6a12a91

[NYC_SKP]

1. Consistent with other electronics, like the $129 Fitbit Charge...

Or even the Fitbit Flex, at $99 the cheapest of the lineup, which probably costs under $10 to make, a 10:1 ratio.

The iWatch is closer to 4:1, just over.

[DJ13]

2. I bet my Michael Kors watch costs more to make than that thing

[Hoyt]

3. Big marketing budget. I'll stick with my phone.

[greyl]

4. You gotta figure in the high salaries of all its developers, though... nt

[onehandle]

5. 'Note that the analysis does not include logistics, amortized capital expenses, overhead, R&D...'

'...software, IP licensing and other costs.'

These costs can make the costs of the raw material seem pretty puny, which is why these 'estimates' have little to do with reality.