Apple Watch has lowest hardware cost to retail price, says IHS study

Apple Inc's Watch has the lowest ratio of hardware costs to retail price across any Apple phone, according to a preliminary estimate by research firm IHS after a teardown study. The hardware cost of an Apple Watch

Sport model was about 24 per cent of the suggested retail price compared with 29-38 per cent for the iPhone maker's other products, IHS said on Thursday.

The Apple Watch Sport 38 mm costs $349 and the teardown shows a bill of materials of $81.20 with the cost of production rising to $83.70 when $2.50 in manufacturing expense is added, IHS said.