The new Apple Watch has the lowest hardware costs compared to retail price of any Apple phone, on the order of 24% of the manufacturer's suggested retail price. The preliminary estimate comes from IHS and its Teardown Mobile Handsets Intelligence Service.

(Watch a video of the teardown by clicking here.)

The ratio could be of great benefit to Apple's bottom line if sales match the interest the Apple Watch has generated, says Kevin Keller, senior principal analyst-materials and cost benchmarking services for IHS Technology. Estimated hardware cost to MSRP ratios for other Apple products reviewed by IHS are in the range of 29-38%.

The teardown of the Apple Watch Sport 38 mm by IHS Technology shows a bill of materials of $81.20 with the cost of production rising to $83.70 when the $2.50 manufacturing expense is added. The retail price of the Apple Watch Sport 38 mm is $349.00.

There are several new features and manufacturing methods used in the Apple Watch Sport, including a Pulse Oximeter, Force Touch sensor, "Taptic Engine" feedback, encapsulated modular printed circuit board (PCB) assembly and stacked-die integrated circuits.

A new electromagnetic shielding method is used on the PCB assembly, saving a significant amount of space, as well as cutting down slightly on weight, Keller says.

The Apple Watch is equipped with inductive charging technology and is being shipped with a wireless charger, based on Apple's MagSafe charging technology.

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