How much does it really cost to make an Apple Watch Series 6?

How much does it really cost to make an Apple Watch Series 6?

Last Updated on: 4th June 2021, 07:51 pm

Apple launched its Watch Series 6 of smartwatches last year with the following price tags:

  • Aluminum model GPS only (40mm) = $399
  • Aluminum model GPS only (44mm) = $429
  • Aluminum GPS + Cellular (40mm) = $499
  • Aluminum GPS + Cellular (44mm) = $529

According to Counterpoints Global Smartwatch Shipment Tracker, Apple’s market share climbed to 33% in the first quarter of 2021. The Watch Series 6 played a central role in the development.

As for the price tags, they look pretty good compared to Apple’s previous smartwatch models. That is, until you find out what it actually cost the company to make it.

Also Read: Apple to Accept Cryptocurrency Payments Soon

According to a recent report from Counterpoint Research, the Apple Watch Series 6’s BoM (nomenclature) analysis found the device was only $136 to manufacture.

The cost of the application processor, display, sensors and housing alone account for around 68% of the total value of the laptop.

The company has eliminated the Force Touch feature from the model, which reduces production costs.

Apple products are known to have high profit margins, so it’s no surprise that the real cost is less than half the selling price.

Also Read: Apple’s Next M2 Chip Goes Into Mass Production This Month

The Apple Watch Series 6 features an Always-On Retina LTPO OLED display that delivers 1,000 nits of peak brightness with ION-X glass, which is about 13.2% of the device’s total value.

The same goes for the Apple Watch SE, which starts at $279.

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