Speaking during the company’s fiscal Q2 earnings call earlier this week, Apple CEO Tim Cook said that nobody has “come close” to guessing the actual component costs of Apple products. IHS is giving it a try anyway, and recently published details that Apple spends $81.20 on components for the Apple Watch Sport.
The company says it believes Apple spends $20.50 on the touch screen, $10.20 on the processor, $7.20 on memory, $5 on power management, $3 on the Bluetooth chip, $5.50 on user interface controllers, $3 on sensors, $.80 on the battery, $16.50 on other parts, such as the wrist band, and $9 for the remainder of the parts inside the box. IHS estimates Apple spends about $2.50 manufacturing each Apple Watch Sport, bringing the total cost of components and manufacturing to $83.70.
But let’s get back to what Cook said earlier this week. “I haven’t seen [Apple Watch component breakdowns], but generally there are cost breakdowns around our products that are much different than the reality,” Cook said during the conference call. “I’ve never seen one that is anywhere close to being accurate.” Either way, Apple is probably making solid cash off Apple Watch units, especially considering the entry-level model starts at $349.
Check out the IHS breakdown below: