A $349 Apple Watch Only Costs $83.70 To Make: IHS

(Reuters) – Apple Inc’s Watch has the lowest ratio of hardware costs to retail price across any Apple phone, according to a preliminary estimate by research firm IHS after a teardown study.

The hardware cost of an Apple Watch Sport model was about 24 percent of the suggested retail price compared with 29-38 percent for the iPhone maker’s other products, IHS said on Thursday. (http://bit.ly/1zuOZMq)

The Apple Watch Sport 38 mm costs $349 and the teardown shows a bill of materials of $81.20 with the cost of production rising to $83.70 when $2.50 in manufacturing expense is added, IHS said.

(This version of the story corrects the first paragraph to say Apple phone, not Apple product, after IHS amends report)

(Reporting by Supantha Mukherjee in Bengaluru; Editing by Kirti Pandey)

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