The Apple watch costs about 85$ to make

[Victorious Secret]

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.

 

Cook did say that, for an Apple product, the margins were not what they expect them to be. Which means the Apple Watch probably has industry average margin right now. 

 

Apple made 13.8 billion profit off of 58 billion in revenue. That 44.2 billion didn't just go into smoke. Salaries, investments, taxes, pensions, corporate expenses, cost of business, RD, payments to other companies - it adds up fast. 

[zappian]

R+D and marketing will play a part also.

The thing is apple can keep its margins as high as they want , the apple watch was a success.

While their products dont appeal to me whatsoever they sell , and they sell a lot . And while they do they can set whatever margin they want , until they stop selling.

If people don't like it they should stop buying apple products .

[bob345]

it's really astonishing how many people are just blowing off engineering costs as irrelevant. Just as an example, look at Intel cpu's that use only a few dollars worth of silicon. Why do you think an I7 costs as much as they do? Is definitely not because of material costs.

[William5849]

Everybody in here validating the cost of the Apple Watch. Now you see why you pay more for Alienwawre. R and D. It took time for them to research the advanced case and cooling and design of the Alienware Area 51. If you can validate the Apple Watch, you can validate Alienware.

[TroubleKlef]

The Galaxy S5 was reported to cost $256 to make which was then turned around to sell for $650. I thought it was business 101 that the actual product you make is quite cheap compared to what you sell it for. It's the advertising, r&d, testing that make up the rest of it. 

[han_han08]

hahahaha

 

paying more for overhead, R&D, advertising....worth it!!!

[Lazmarr]

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...

that gold probably adds like $25 at most

[Stomplar]

What do you mean R&D? lol there is no R&D for a watch. I dont care how smart it is. Its the same tech as anything else. R&D has already been done for it a long time ago. Its just putting the pieces together. Apple isn't a space exploration company investing millions of dollars on R&D. depsite what you think or what they claim. 

 

Dont fall for the R&D lie. Its just bs spoon fed to you to allow them to charge more. thats it.