3 ms·
That's not inconsistent with this analysis. As the article states, there are several factors, many of which would tend to be higher for a first generation produ
by shawn-furyan 11y ago
That's not inconsistent with this analysis. As the article states, there are several factors, many of which would tend to be higher for a first generation product than a latter generation product (i.e. setup costs), that the bill of parts doesn't take into account.
- amputect 11y agoThe setup / R&D costs for manufacturing alone must have been enormous. Greg Koenig wrote a great piece about the manufacturing process[1]. It's a really interesting read, even if you're not a big fan of Apple products. 1: http://atomicdelights.com/blog/a-glimpse-at-how-the-apple-watch-is-made http://atomicdelights.com/blog/a-glimpse-at-how-the-apple-wa...
- astrodust 11y agoThere could also be a very high internal defect rate which would significantly impact the net cost per unit.
- hinkley 11y agoThey could also be expecting a high external defect rate, and be factoring, say, 10% into the sale price to defray warranty costs. It's also the first of a new product line, so it likely also has to cover some of the costs of creating and entirely new division inside of Apple, from line support up to executives. NOT just the R & D costs.