Apple Watch Sport Component Costs Estimated at $83.70, Which Won't Sit Well With Tim Cook

[SchumPeter]

Your comment, in short, shows the ignorance of the average person thinking that the cost of the individual components equals the cost of the assembled product fully developed. Unfortunately nothing is going to fix the stupidity of the average person out there.

I don't think its stupidity at all. The gent is looking at the cost and making inference from the advertised price. A question: Can you tell me how much of a price difference in manufacturing would a retina iphone 4 screen cost now? and after R&D costs pre 2010? Now how much R&D was required in minimizing a retina screen? not as much as it was to create the screen on the iphone 4. My point is there is some R&D but nothing that equates to the profit maximizing retail price.

With that said, I will be probably be buying one but not just yet.

 

[johnnyturbouk]

What product had a 98% hardware cost???

Did Sony not sell the PS3 at loss, when they first dropped in 2006?

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I do agree the article is a little misleading, and fails to factor in a number of other, important variables like R&D, marketing, advertising, design cost, et

However, for the cost, even the apple sport watch should have had a sapphire display.

 

[tivoboy]

Bugatti

What product had a 98% hardware cost???

Bugatti had a 250% product cost on the Veyron, Porsche had similar on the 959, the McClaren F1 was apparently 400%

I think many watch makers actually have models with product costs well above 100% as loss leaders for their brands.

 

[ZipZap]

Bugatti had a 250% product cost on the Veyron, Porsche had similar on the 959, the McClaren F1 was apparently 400%

I think many watch makers actually have models with product costs well above 100% as loss leaders for their brands.

None of those products are mass produced. They don't make your point. I am sure they are overcharging on their other products to make up any shortfall.

 

[tivoboy]

None of those products are mass produced. They don't make your point. I am sure they are overcharging on their other products to make up any shortfall.

but, that wasn't the question..it was simply

"What product had a 98% hardware cost???"

 

[Lucky736]

If Jonny and co are paid annually for their services, accross all hardware lines, where does one differentiate the expense of the singular watch cost of R&D internally?

Component costs and labor estimate. Jonny gets paid very well, and gets bonuses in other ways I am certain.

 

[wapvi]

Lol what R&D? Do you see how much apple spend on R&D in terms of revenue ? It's peanuts. Apple can price their products however they please as brand loyalty is prevailing

 

[mi7chy]

$83? Explains why you get what you paid for. Apple should've spent more to make it more premium.