Apple Watch Series 6 bill of materials estimate is barely even a third of the smartwatch's official price
The market research experts at Counterpoint have come up with a BoM analysis for the Apple Watch Series 6 that gives some idea of how much money Cupertino makes out of each smartwatch sale. Although the estimate could be marginally inaccurate and there would be other costs involved as well (such as research and development), it’s still a healthy sum per unit going into Apple’s coffers.
The analysts came up with a total of US$136 for the bill of materials, which is just over 34% of the official price for the Apple Watch Series 6 at US$399. Most of the expense is put into the CPU, sensors, display, and casing, with Counterpoint reckoning that these parts amount for around 68% of the total bill. The rest of the outlay goes on things like the packaging, assembly, and software. Costs were reduced by not including Force Touch in the Watch Series 6.
Fans will hardly be shocked by this sizeable difference, especially as Apple is far from being the only technology brand that places a considerable profit margin on its products. Samsung has also been noted for adding huge mark-ups on its Galaxy-branded devices. But the Apple Watch Series 6 is much cheaper than an iPhone 12 or Galaxy S21, so the US$263 difference between the BoM estimate and official RRP will be harder for buyers to swallow.