01/05/2015 10:28 BST | Updated 01/05/2015 10:59 BST

Apple Watch Costs Just £55 To Manufacture Despite Price Tag Of More Than £300

ChinaFotoPress via Getty Images
HANGZHOU, CHINA - APRIL 24: (CHINA OUT) An Apple Specialist help a customer try Apple Watch at the second Apple Store at the Mixc Mall on its first day open on April 24, 2015 in Hangzhou, Zhejiang province of China. Hangzhou opened its second Apple Store at Mixc Mall which has been the 19th Apple Store in China mainland. (Photo by ChinaFotoPress/ChinaFotoPress via Getty Images)

The costs of making an Apple Watch is just $83.70 (£54.63), according to a report by IHS Technology, making it Apple's highest mark-up.

The total cost of components was just $81.20 (£53.09), the company found, with a $2.50 manufacturing cost making the total just 24% of the price of Apple's cheapest watch (based on the US price for the Apple Watch Sport 38mm at $349.00).

The most basic model, the 38mm Silver Aluminium Case Sport Watch, currently retails at £299 in the UK while standard Watches range from £479 to £949.

apple watch

Rather shockingly, the biggest hinderance of the Apple Watch - its woeful battery - costs the company just 80 cents (52p).

You can read the full component price breakdown on Business Wire.


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