The Apple Watch Sport model has been deconstructed by analysts who say the sum of its parts is worth less than a quarter of its lowest retail cost.
The sportier entry-level edition costs over $350 (£299), but IHS Technologies (via Zdnet) estimates the components are worth just $83.70 (about £55).
According to the company that ripped off the Apple Watch for the estimates, the most expensive part is the display at $20.50 (about $13.38) per watch, while any S1 processor will likely cost Apple around $10.20 ($6 £.66) costs.
The company estimates that the battery only cost $0.80 (about 50 pence), which might lead some more sardonic people to claim that if they had spent more on the battery, the thing might last more than a day!
The 8GB of onboard storage costs $7.20 (about £4.70), while the power management features are listed at $5.50 (£3.62). The built-in sensors and connectivity technologies (like Bluetooth, Wi-Fi and NFC) are listed at $3.00 (£1.95) each.
Under mechanical anomalies like switches and straps, Apple is paying $16.50 (£10.77) per watch, according to IHS, while box contents like the extra strap and inductive charger are estimated at $9 (£5.87) per watch.
See also: Apple Watch vs Android Wear
If the company’s estimates are anywhere near right, then the Apple Watch will be one of the top-rated tech products out there.
Of course, the costs of R&D, assembly, shipping, marketing, and retail must be factored in, but it’s safe to assume that Apple is making a pretty penny on every Apple Watch shipped (or waiting to be shipped).
IHS analyst Kevin Keller said, “While retail prices always tend to fall over time, the ratio for the Apple Watch is lower than what we’ve seen for the iPhone 6 Plus and other new Apple products, and could be for that Apple’s bottom line will be of great benefit if sales match the interest the Apple Watch has generated.”
For What It’s Worth Apple CEO Tim Cook recently said he’s never seen an estimate that was “even remotely accurate,” so there you have it.