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The Apple Watch Sports Costs $84 To Make

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Last month, the highly anticipated new wearable from Apple finally became available for purchase and broke records by shipping nearly one million units in just the first day. Recently, IHS, a research and analytics company that specializes in gadget teardown, took apart the Apple Watch Sport to figure out its production cost. Shockingly, it was discovered that the sum of the parts amounted to just $84.70, which is a fourth of the $349 retail price. The most expensive component is the touchscreen display, which goes for $20.50. Kevin Keller, senior principal analyst at IHS, claims this is expected saying, "It is fairly typical for a first-generation product rollout to have a higher retail price versus hardware cost." Don't be too upset, though, because the estimate does not take into account costs related to research, development, marketing, logistics, intellectual property and all that good stuff. You can read the full report here.