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The research and analytics company IHS recently broke down the price of the materials used to make the Apple Watch Sport. As the company's least expensive smartwatch option, the Sport retails for $349, but CNN reports that the production cost is only a fourth of that number. IHS found that the hardware totals came to $84.
Of course the figure doesn't take into consideration development, marketing, or any other overheard costs, but the breakdown is still interesting. The most expensive aspect of the watch is the 1.34-inch LG touchscreen display, which comes in at about $21, followed by the writstband and apps processor. The least expensive aspect is the battery pack at less than $1.
Kevin Keller, a senior principal analyst at IHS, says that this kind of markup is normal for a first-generation product. At least now you can see exactly what you're paying for.
Check out the video of the price breakdown over at CNN.