A $349 Apple Watch Only Costs $83.70 To Make: IHS

(Reuters) - Apple Inc's Watch has the lowest ratio of hardware costs to retail price across any Apple phone, according to a preliminary estimate by research firm IHS after a teardown study.
The hardware cost of an Apple Watch Sport model was about 24 percent of the suggested retail price compared with 29-38 percent for the iPhone maker's other products, IHS said on Thursday. (http://bit.ly/1zuOZMq)
The Apple Watch Sport 38 mm costs $349 and the teardown shows a bill of materials of $81.20 with the cost of production rising to $83.70 when $2.50 in manufacturing expense is added, IHS said.
(This version of the story corrects the first paragraph to say Apple phone, not Apple product, after IHS amends report)