The Apple Watch has the lowest hardware costs compared to retail price of any Apple product IHS Technology has researched, according to a preliminary estimate by IHS (www.ihs.com) and its Teardown Mobile Handsets Intelligence Service.
The teardown of the Apple Watch Sport by IHS Technology estimates that the actual hardware costs are only about 24%of the manufacturer’s suggested retail price (MSRP). Estimated hardware cost to MSRP ratios for other Apple products reviewed by IHS are in the range of 29% to 98%.
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