Apple launched its Watch 6 Series of smartwatches last year with the following price tags:
Aluminum GPS only model (40mm) – $399
Aluminum GPS only model (44mm) – $429
Aluminum GPS + Cellular (40mm) – $499
Aluminum GPS + Cellular (44mm) – $529
According to Counterpoint’s Global Smartwatch Shipment Tracker, Apple’s market share climbed to 33% in Q1 2021. The Watch 6 Series played a pivotal role in the development.
As far as the price tags are concerned, in comparison with Apple’s previous model smartwatches, they seem pretty great. That is until you get to know what it actually cost the company to manufacture it.
According to a recent report by Counterpoint Research, the BoM analysis (bill of materials) for the Watch Series 6 has revealed that the device costs about only $136 to build. The cost for the application processor, display, sensors, and casing together alone accounts for roughly 68 percent of the wearable’s total value. The company excluded the Force Touch feature in the model which reduced the production costs.
Apple products are known to have a sizeable profit margin, so it arrives as no surprise that the actual cost is less than half its retail price tag.
The Apple Watch Series 6 packs an Always-On Retina LTPO OLED display that offers 1000 nits of peak brightness with ION-X glass which accounts for about 13.2 percent of the device’s total value.
The same holds for the Apple Watch SE that starts with a $279 price tag.