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I didn't see anything in this article confirming that Tim Cook won't be happy about this. Are we putting jokes in the headlines now? Please stop.
 
Poor journalism.

Doesn't have cost of aluminium case, glass, band, manufacture and shipping costs, along with R & D etc

It's just the component cost of the guts
 
To anyone who believes it costs under $90 to make an Apple Watch:

  1. Order the parts
  2. Assemble watch yourself
  3. Sell on eBay for $299 (232% markup)
  4. Profit!

You should add the disclaimer that if you already work for Samsung, Motorola or LG, you're already doing this. :cool:

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Poor journalism.

Doesn't have cost of aluminium case, glass, band, manufacture and shipping costs, along with R & D etc

Plus they have to engrave "Assembled in China" on each one. That's got to be expensive. :rolleyes:
 
I didn't see anything in this article confirming that Tim Cook won't be happy about this. Are we putting jokes in the headlines now? Please stop.

The headline is alluding to Cook's comment during Apple's Q1 financial call where he explicitly pointed out that analysts' estimates of the cost of making Apple products are never even remotely accurate.

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You should add the disclaimer that if you already work for Samsung, Motorola or LG, you're already doing this. :cool:
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How's that working out for Samsung lately?


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I'm only guessing, but I doubt its that simple. All of those products are established, hence ongoing R&D costs will not be as much as starting a product from scratch. The link you posted states that R&D costs went up by $500 million compared with last year. A variety of reasons are given but I suspect that a large proportion of the increase was down to the watch, so its unlikely to be a simple mathematical correlation - you can't simply divide the total spent by the total number of devices - proportionately it is likely that they have spent more on developing the watch in the last year than they have on refining the iphone (which obviously accounts for a huge proportion of the total number of devices). I also suspect that the new Macbook will likely be more highly represented in the overall figure too...
Yes, its rough, but the R&D costs for this quarter is most probably related to future products rather than present products. Also, a large part of the R&D costs are probably related to manufacturing technologies that are applicable to all products.
 
Yes, its rough, but the R&D costs for this quarter is most probably related to future products rather than present products. Also, a large part of the R&D costs are probably related to manufacturing technologies that are applicable to all products.

R&D is a little more expensive when it involves coming up with your own ideas rather than just copying a competitor's product.
 
Go ahead and make your own phone, then.

Right, as consumers we should not complain about products if there is reason to do so. we should go and develop our own products. OK, so that Honda Accord is not giving me enough horsepower for the price I paid for it; Let me go make my own car.
 
here's $100 isuppli, can you build me a functioning apple watch?

you can even keep the $16.30 for profit.
 
So wait, if the breakdowns are showing a lower than expected manufacturing cost, leading to higher than expected margins, why would that "not sit well with Tim Cook"?
 
So wait, if the breakdowns are showing a lower than expected manufacturing cost, leading to higher than expected margins, why would that "not sit well with Tim Cook"?

Because this will inflate Wall Street's profits projections for Apple, which they will be unable to meet.
 
The cost of single items is nice and all but don't manufactures get a bulk/high volume rate which lowers cost even further?
 
$83 watch :eek: ... and Ives said Switzerland better take notice .. yeah cause any successful business man will pick a $83 watch to a Rolex...

You say that only because iFixit hasn't torn down a $25G Rolex, and reported on their estimate of the prices for the gears and bearings in the movement, and raw metal costs in the case and band. The ratio to price wouldn't total up that much different from the estimate for an Edition Watch.

The worldwide jewelry business does not generate most of its profits by low markups over materials and mining costs.
 
Right, as consumers we should not complain about products if there is reason to do so. we should go and develop our own products. OK, so that Honda Accord is not giving me enough horsepower for the price I paid for it; Let me go make my own car.

worst logic ever.

no seriously go build a honda. stay off the forums.
 
Yeah. And an Intel i7 chip costs just a bag of sand, RIGHT?

Intel doesn't have the luxury of outsourcing, well... Everything. They have to absorb the manufacturing costs (fabs) as well as costs of bad yields
 
Tim Cook said

“There are cost breakdowns around our products that are much different than the reality,” he said. “I’ve never seen one that is anywhere close to being accurate.”

The beauty of this statement is that he could be saying that the Apple Watch’s component costs are even lower than has been estimated.
 
You have to add in R&D, Labor, marketing, and retail costs to get a final figure of how much this watch costs to make.
 
It is the cost of a watch. It isn't the cost of the entire investment.
Actually not even that - the manufacture and shipment of a watch isn't free either. The whole thing is about IHS iSuppli promoting itself, as they always do, not any reality.
 
To the people who think the watch is over priced as a result of this...try selling bags of cement and piles of wood for the same price as a fully assembled house of identical mass.

I like how you think but a house takes like a year to build, a watch can be constructed in few hours by machines ?
 
Well done for exposing more of Apple's rotten core of hype, hype and more hype. The glide angle gets steeper as the buying public get more informed.
 
That's pretty silly. You are not just buying parts, but a usable product. I am not sure how familiar you are with product development, but that's like saying my blue jeans are made of thread that cost only $5 while the pair of jeans cost $50.

Well, your point is correct, but your analogy is bad. Levi-Straus developed the blue jeans that you wear today over 150 years ago. I think they've recouped their development money... ;)
 
an Audi A4 sold for more than its Skoda equivalent.

Skoda's generally look horrible and are less comfortable. Audi cars are some of the best looking these days and most delicately designed. I am ignorant of the technical performance of each, but it's ludicrous to say the only difference between them is a logo.
 
Well done for exposing more of Apple's rotten core of hype, hype and more hype. The glide angle gets steeper as the buying public get more informed.

Please tell us how this product is worse than those of the competition and how it is not worth it for those who buy it. That's how hype is determined, not because you say so, or even because a product is expensive.

Those tripe companies have the components of the Iphone 6+ 128G, at $250 bucks, and probably the components of the latest retina Macbook at less than $400, so I guess all Apple products are "hype" according to your "expert" (sic) commentary.

Funny how despite the watch being so "cheap" to produce... Other companies make way worse ones while still charging $200-$300. What's their excuse?
 
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