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Apple Watch Sport Component Costs Estimated at $83.70, Which Won't Sit Well With Tim Cook
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It is the cost of the components though. I think this information is interesting and worth reporting. Who knew all those sensors were so cheap for example?
So all you have to do is build one for $120 with the same build quality as Apple does, and everyone will change their opinions of you from why they are now to "genius".
And. The. Cost. Of. All. Those. Celebrity. Watches. That. Were. Given. Out. For Free.
But i agree with you.
You don't know that this is what Apple is paying for them. How do we even know they're pricing the right components?
Interesting that they're using Toshiba MLC, as opposed to 6/6+ that has MLC/TLC Toshiba mixed (and Sandisk TLC, Hynix MLC)
Transportation cost, packaging, sales and sales support, and advertising a lot more expensive then each unit.
Do you even understand what profit is? Do you realize that the cost of a typical product is 4x the cost of its components? There's such a thing as engineering (which takes several years for 100s of people), QA, manufacturing, distribution, marketing, advertising, service, support, warranty, dealing with returns.
That's what they typically teach in undergrad econ classes in the first couple weeks. There are models that add fixed costs, I guess their class didn't get there yet...
These low component costs are also a good sign for the future - that means that competitor products with all sorts of crazy sensors will be out there and they'll be powerful.
Apple will be sweating all this because they want to protect the ecosystem (the watch and phone). Unfortunately for them, future standards like bluetooth low energy and iot protocols on top (like COAP) - will enable the watch of your dreams that will be awesome and easily decoupled from a phone.
This will raise everyone's game. I'm expecting fast changes, and even I will be surprised at how fast these things evolve.
Apple will be sweating all this because they want to protect the ecosystem (the watch and phone). Unfortunately for them, future standards like bluetooth low energy and iot protocols on top (like COAP) - will enable the watch of your dreams that will be awesome and easily decoupled from a phone.
This will raise everyone's game. I'm expecting fast changes, and even I will be surprised at how fast these things evolve.
Ick
The most scandalous feature here is the cost of the bands. HOw much R. & D. goes into the development of a wristband? The most conspicuous insult to consumers is that $450 stainless steel bracelet. The Speidel Twist-o-Flex retails for thirteen bucks.
The most scandalous feature here is the cost of the bands. HOw much R. & D. goes into the development of a wristband? The most conspicuous insult to consumers is that $450 stainless steel bracelet. The Speidel Twist-o-Flex retails for thirteen bucks.
Had no idea it used an OLED display. Never liked them for outdoor use, surprised to see Apple using them to be honest.
Actually, factor in land costs and it's not too bad. When we built a house in 1994 it cost us about £30k for a house valued at £300k. Labour was the cheapest part. Here the labour is not only the manufacturing but also the R&D.
Actually, factor in land costs and it's not too bad. When we built a house in 1994 it cost us about £30k for a house valued at £300k. Labour was the cheapest part. Here the labour is not only the manufacturing but also the R&D.
I'm not saying R&D has no impact on the profit margin. I'm saying it has no impact on price.
And I bet at least $10-20 of every watch goes towards marketing, TV, print, radio, live events, etc.
I'm sure another $10-20 go to R&D. And what about the cost to setup the manufacturing process? Setup costs are expensive - tooling, molds, etc.
I'm sure the cost of the watch may come down $50 next year. Hence why I'm waiting for v2.
Apple has a tendency to drop prices on products. Look at the iPhone, MacBook, Mac Mini, etc..
I'm sure another $10-20 go to R&D. And what about the cost to setup the manufacturing process? Setup costs are expensive - tooling, molds, etc.
I'm sure the cost of the watch may come down $50 next year. Hence why I'm waiting for v2.
Apple has a tendency to drop prices on products. Look at the iPhone, MacBook, Mac Mini, etc..
Try giving expensive gold stuff to celebrities like Beyoncé or Sam Smith then the cost goes up!
haha, you go buy 1 of these sensors and I bet it'll cost you more than $349.
Apple obtained these prices through negotiations and HUGE quantity orders.
Heck, some places won't even budge with a discount unless you order 10k or 100k quantities.
No, but i have taught Intro Micro (an intermediate Micro Theory) to undergrads.
Looks like someone never took or failed intro micro. Go figure out what profit maximization conditions are(MC=MR), and you'll understand why fixed costs don't play a part.
http://en.wikipedia.org/wiki/Profit_maximization
I can't imagine it's the same people whining every time a new parts price breakdown is done. No, wait, yes I can. You're right about the stupidity.
Actually, I can't buy the dry-aged Prime beef that they provide at a great steak restaurant at the grocery store.
Those complaining about the high price of the
Watch needs to take a deep breath and remember. The price is what the market will bear. If people are willing to shell out $350-$17,000 for one of these things, that is what Apple will sell them for.For me, the price is too high for something I have no use for. Hail, if everyone was as tightfisted with $$$ as me, then we'll all be wearing Seiko 5's and using 1st gen smartphone.
ALmost gone
why is the apple band $449?!!
It's stainless steel...
It's a total ripoff.
Apple has been screwing us on memory upgrades and things like this for years. I have been a loyal customer for 14 years and I feel taken advantage of.
it's like just not bad enough to leave, but it's getting close.
why is the apple band $449?!!
It's stainless steel...
It's a total ripoff.
Apple has been screwing us on memory upgrades and things like this for years. I have been a loyal customer for 14 years and I feel taken advantage of.
it's like just not bad enough to leave, but it's getting close.