Report reveals shocking difference between Apple Watch 6 Series’ actual manufacturing cost and retail price

A recent report by Counterpoint Research revealed the BoM analysis (bill of materials) for the Watch 6 Series.

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Apple launched its Watch 6 Series of smartwatches last year and garnered major profit from their sales. According to Counterpoint’s Global Smartwatch Shipment Tracker, Apple’s market share climbed to 33% in Q1 2021, and the Watch 6 Series played a pivotal role in the development.

Price of the Watch 6 Series

The prices of Apple’s latest smartwatches seem pretty fair as compared to Apple’s previous model smartwatches until you realize what it cost the company to manufacture these watches.

The price tags of the series are as follows:

  • Aluminum GPS only model (40mm) – $399
  • Aluminum GPS only model (44mm) – $429
  • Aluminum GPS + Cellular (40mm) – $499
  • Aluminum GPS + Cellular (44mm) – $529

Cost of the Watch 6 Series

A recent report by Counterpoint Research revealed the BoM analysis (bill of materials) for the Watch 6 Series. According to details, it cost Apple only $136 to build the device.

The cost for the application processor, display, sensors, and casing together alone accounts for roughly 68 percent of the wearable’s total value. The Apple Watch 6 Series 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 company excluded the Force Touch feature in the model which reduced the production costs further.

Apple Products – Major Profit Margin

It arrives as no surprise that there is a major difference between the Watch 6 Series’ actual cost and retail price. Apple products are known to have a sizeable profit margin.

What are your thoughts on this? Please share with us in the comment section below.

  • The cost of a product is not based upon it’s material cost alone. There’s more to that:
    1: Research and Development
    2: Usability
    3: Who else is offering similar product
    4: How much it’s liked by customers and more ………


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