Today, IHS disassemblied one Apple Watch sport edition. IHS believed that the hardware cost of this Apple Watch is the lowest one among all Apple products IHS has studied. The size of this Apple Watch sport edition is only 38mm. Its material cost is only 81.2 US dollars. The most expensive part is the screen. It includes one OLED panel and Ion-X protective glass. The screen cost is 20.5 US dollars.
The CPU of this smart watch is Apple S1. Its cost is 10.2 US dollars. Except the material cost, we have added 2.5 US dollars production cost. So the total cost of Apple Watch sport edition is only 83.7 US dollars. Except the sport edition, Apple Watch has another two editions. But IHS did not tell their cost. But they adopt the sapphir screen and more expensive case. So their cost will be higher than the sport edition.
This Apple Watch sport edition is sold at 349 US dollars. Its cost is only taken 24% of its price. The cost of other Apple products takes about 29% to 38% of its selling price. But recently, Apple announced that the profit of Apple Watch is lower than other Apple products.
Of course, the above cost does not includes development, marketing, software cost. ISH also confirmed that Apple Watch sport edition has 8GB flash memory from Toshiba, 512MB RAM. Other chipsets are from Broadcom, STMicro, NXP, Maxim etc. All of them are well known companies in the world.