Why ‪Apple‬ watch costs very high for consumer




A research firm IHS did it’s research on Apple watch. This watch just cost about 5200 INR. This based on the cost of the components used in making of this watch. In making of apple watch they spend only 24% of retail price.

Apple watch 38mm model costs 349 USD (22206 INR), and they spend only 81.70 USD in making according to material bill + 2.50 USD (159.10 INR) production cost, so the total is 83.70 USD (5189.40 INR)

This means the selling price is 4X the making cost. But we didn’t include any other charges in this such as research and development cost, software cost, copyright etc.
But apple watch is a good product .Features it has, not all are useful. But it has all features in a single device.

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