Apple’s Apple Watch Series 6 material cost is only 136 US dollars, SoC, memory occupy the majority

With its stylish and modern design, coupled with one of the best smartwatch interfaces, Apple’s Apple Watch won about 33% of the smartwatch market share in the first quarter of 2021. The latest Apple Watch Series 6 starts at a low price of US$399, but according to Counterpoint Research’s analysis, the manufacturing cost of this wearable device is only US$136.

Counterpoint Research calculated in a bill of materials (BoM) report that the cost of the application processor, display, sensor, and casing alone accounted for about 68% of the total cost of Apple Watch Series 6. Apple Watch Series 6 uses a regular Retina LTPO OLED display that provides a peak brightness of 1000 nits. But because the company cancelled the Force Touch function in this model, the overall BoM has dropped.

Apple not only added a more efficient processing unit to the S6, but also upgraded Wi-Fi and Bluetooth chips. Including the 1GB fast LPDDR4X memory and 32GB onboard storage in the new Apple Watch Series 6, this part of the device accounts for 23.7% of the cost.

The large number of sensors in Apple Watch Series 6 only accounts for 6% of the material cost. Although Apple decided to cancel the ceramic version of Apple Watch Series 6 to reduce costs, the company has improved the performance of the speakers and Taptic Engine, plus wireless charging coils and batteries, these upgrades accounted for only 6% of the total cost.

As September approaches, Apple may release a new Apple Watch Series 7 smart watch, bringing a redesigned body and a large number of hardware, software and sensor upgrades.

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