Apple currently leads the smartwatch market globally. Thanks to the company’s active marketing, its watch series has achieved global success. Now, a new report shows that the manufacturing cost of the brand’s latest Apple Watch Series 6 is only $136.
According to a report by Counterpoint Research, a BoM analysis (bill of materials) for Watch Series 6 shows that the manufacturing cost of the device is approximately US$136. The cost of application processors, displays, sensors, and housings alone account for about 68% of the total value of wearable devices.
Watch Series 6 is equipped with an Always-On Retina LTPO OLED display, which can provide 1000 nits of peak brightness. But because the company excluded the Force Touch feature in the model, the overall BoM was reduced.
This even makes the giant Cupertino-based smartwatch 0.3 millimeters thinner than its predecessor. The display screen and the touch module strengthened by ION-X glass account for approximately 13.2% of the total value of the device.
When it comes to SIP (System Package), the latest Apple Watch is equipped with a dual-core “small” energy-saving core based on the A13 chipset. The iPhone manufacturer claims to be 20% faster than the previous generation of SIP.
The SIP module of the smartwatch, 1GB of LPDDR4X RAM, and 32GB of internal storage account for approximately 23.7% of the total equipment cost. For those who don’t know, Watch Series 6 starts at $399 in the United States. As we all know, the profit margins of Apple products are considerable, so it is not surprising that the actual cost is less than half of its retail price.