The Apple watch costs about 85$ to make

[Victorious Secret]

Yeah, they made it more scratch resistant by not putting as much gold in it.

 

It has "18k" gold that has less actual gold than normal 18k gold.

 

The current Edition doesn't use the new blend of gold and ceramics. Its currently still regular old gold.

 

And the new gold ceramic blend isn't "18k". Its 18k plain and simple, and this comes from the defined methods of determining the karat number.

[Nineshadow]

The current Edition doesn't use the new blend of gold and ceramics. Its currently still regular old gold.

 

And the new gold ceramic blend isn't "18k". Its 18k plain and simple, and this comes from the defined methods of determining the karat number.

Really? They aren't using that gold in their Edition edition? My bad then.

[Victorious Secret]

Really? They aren't using that gold in their Edition edition? My bad then.

 

Nope. I heard conflicting reports but the last I heard from Apple, they didn't roll it out at least for now. Then again, I could be out to lunch since before launch I heard that they in fact would be rolling out the new blend. 

At the very, very least Apple has patented their gold ceramic blend and it isn't a far fetched patent since its reproducible. 

 

[KirbyTech]

I am not a metallurgist so I have no idea, its a completely new metal they have created

 

"gold" etc (esepcially used in jewelry) has no real worth only the market value placed on it, the same could be said for whatever apple has developed

Its not a new metal they just adapted the regular combination so by weight there would be less gold making it more scratch resistant. Literally changed one thing about it. 

 

Yeah, they made it more scratch resistant by not putting as much gold in it.

 

It has "18k" gold that has less actual gold than normal 18k gold.

Yes because of the weight ratio I mentioned above. That is why it is best to buy 10k if you want it to last.

[ShadowCaptain]

they just adapted 

 

Doesn't that make it a new metal? if you change its make up etc

[That Norwegian Guy]

In B4 rabid fanboys use the R&D excuse

 

Between marketing and several years of research and development, I'm sure the cost is much higher. Though also sure they make a good amount off of each one.

 

Damn ninjas

[MrDynamicMan]

I'm pretty sure they have other costs. So yeah while Apples gross profit figure is probably insanely high, they will also have a fair amount of expenses. What I'd really be interesting in seeing is Apples advertising expenses.

That gold definitely adds like 5k...

No it adds about 1k-2.5k.

[KirbyTech]

Doesn't that make it a new metal? if you change its make up etc

Sure, but that doesn't change the fact they used less gold than a typical 18k thing. 

[KirbyTech]

No it adds about 1k-2.5k.

No... think an ounce of gold is a bit over 1k and they use like half that if it were normal 18k so maybe $500 if you're lucky.

[Victorious Secret]

In B4 rabid fanboys use the R&D excuse

 

 

Damn ninjas

 

How is that an excuse? Is RD not a cost that all companies have to deal with? 

 

Every company has varying RD. RD is higher on products that are brand new for a company, they have to pay for all of that initial work. 

Only a true moron discounts the cost of RD in a product. RD gets amortized over X amount of products that a company hopes to sell. Apple amortizes over a lot more units, so their per unit cost for RD might be lower, but its still there. 

[jbslayer]

This only lists the cost of materials to make the watch. It doesn't show the cost of actually assembling the watch, research and development, and the marketing for the watch.

[MrDynamicMan]

LOL this is a joke. Everyone knows that Apple only sells supreme quality products. And they care about the their business. They care about me. Samsung on the other hand sells way OVERPRICED products and makes them in gold because they think that is what is important... loosers.

Can't tell if serious... Or just trolling. ©_©

[asim1999]

You don't understand how research and development works do you, or why its so expensive? 

No i was responding to an earlier comment about production cost 

[steffen_anywhere]

-snip-

Not surprising, but "costs $85 to make is misleading, when the BOM cost is $85...

 

Between marketing and several years of research and development, I'm sure the cost is much higher. Though also sure they make a good amount off of each one.

Exactly, we're talking BOM cost...

 

Blame inflation. This is just dumb.

LOLWAT

[Victorious Secret]

No i was responding to an earlier comment about production cost 

 

My bad, I think I responded to the wrong person. 

[Dredgy]

In B4 rabid fanboys use the R&D excuse

 

 

Damn ninjas

 

 

Is true though. All sorts of costs are thrown into the final price.

 

When I use younger I used to be manager of several restaurants in a high end hotel chain, and it's a similar deal. Why would we charge $9 for a beer when the pub down the road offers it for $5, and you can buy a bottle at the store for $2? Because we had other costs associated - a portion of rent, staff wages, marketing and printing costs, delivery as well as more unmeasurable costs (such as that we could seat fewer people) were all built into the price of the product.

 

There are dozens of factors that determine the retail price of product, it's never just the raw cost of materials (BOM). This applies to every single company that sells things.

[JAKEBAB]

Wow there really not making as much profit as i thought, at least on the lower costing one.

[TerminalVelocity]

Can't tell if serious... Or just trolling. ©_©

I THINK it was sarcasm....?

[26astr00]

Apple is still ripping you off, whether you take R&D develoment in consideration or not.

The Apple Watch (egular edition) cost about $500 for a $100 watch when other tech companies will charge $250 for a $100 watch.

By the time Apple releases the iWatch 10, R&D costs will be almost nothing and the watch will still cost $500.

[TheSLSAMG]

Blame inflation. This is just dumb.

Inflation has zero percent to do with this.

 

Three words children generally do not understand are "Research and Development."

 

That's right! The cost of raw materials is not the only variable to have involvement in determining the final price of an item, so does research and development. This is how a company figures out how to sell a product, who to sell it to, what features people want and don't want and what will go into the manufacturing process. This is the untold cost, something that tends to cost millions upon millions (and for Apple probably tens of millions or even hundreds.)

 

Is true though. All sorts of costs are thrown into the final price.

 

When I use younger I used to be manager of several restaurants in a high end hotel chain, and it's a similar deal. Why would we charge $9 for a beer when the pub down the road offers it for $5, and you can buy a bottle at the store for $2? Because we had other costs associated - a portion of rent, staff wages, marketing and printing costs, delivery as well as more unmeasurable costs (such as that we could seat fewer people) were all built into the price of the product.

 

There are dozens of factors that determine the retail price of product, it's never just the raw cost of materials (BOM). This applies to every single company that sells things.

 

This, basically. It isn't an excuse, it's a basic cost in making a product. If you don't want to believe that, go right on ahead, but you should know that you're leading an ignorant life.

[Victorious Secret]

 

Inflation has zero percent to do with this.

 

Three words children generally do not understand are "Research and Development."

 

That's right! The cost of raw materials is not the only variable to have involvement in determining the final price of an item, so does research and development. This is how a company figures out how to sell a product, who to sell it to, what features people want and don't want and what will go into the manufacturing process. This is the untold cost, something that tends to cost millions upon millions (and for Apple probably tens of millions or even hundreds.)

 

 

This, basically. It isn't an excuse, it's a basic cost in making a product. If you don't want to believe that, go right on ahead, but you should know that you're leading an ignorant life.

 

 

Yea but, what you said involves way too much critical thinking and its easier to just post nonsense and crap without actually being critical and thinking about what you're going to say. 

 

Cause if people did, the first thing they'd run into is the "amortized" costs of products. Yes, BOM might only be 85 dollars on the Watch, but Apple doesn't put one watch together for 85. Not right now. Maybe in 6 months once their profits have paid off and paid for months of product will they have that kind of cost. 

 

But like I said, thinking is too hard otherwise we wouldn't have these threads designed just to cause unrest. 

[Suika]

I believe Intel pays roughly $1k on a single silicon wafer (this is a really rough estimate), with about 400 dies on it ($2.50 per die), but people would rather complain about the Apple Watch than the price of an i7-4790k versus the Pentium G3258? Pffffffffffffft.

[Victorious Secret]

I believe Intel pays roughly $1k on a single silicon wafer (this is a really rough estimate), with about 400 dies on it ($2.50 per die), but people would rather complain about the Apple Watch than the price of an i7-4790k versus the Pentium G3258? Pffffffffffffft.

 

Its Apple so we have to complain. Law of this forum and the internet. 

[MrSuperb]

was thinking about direct costs like how much R&D and advertising was put into this

even if apple would publish such numbers, it wouldn't be to easy to even calculate those.

I would guess that the overall profit margin for the apple watch will be in the 20-25% area.

[mr moose]

LOL, $85 for a watch.  Next time I get a house built I am going to ask the builder why his profits are so high because the raw materials where less than half what he charged me. :rolleyes:

 

You all know what he is going to say,  and it's not R+D, it's labor, logistics, management, advertising, insurance, taxes (if they pay them ) retail markup, just like every other fucking product on this planet, Why is this even news? it just caters to the short sighted reactionaries who like a corporate ripoff story.