No, the Apple Watch does not cost $84 to make

Mobile Forward:

The Apple Watch is out, and we’re seeing the first analyst estimates of some of its key costs. The variation in these early estimate is huge. It’s so big that, even if some estimates aren’t perfect, others are, to use a Tim Cook phrase, “in another universe”.

From my experience working with product and cost experts at a well-known mobile device company, I can tell you: Apple Watch does not cost $84 in hardware and manufacturing. It costs meaningfully more. Probably more than 2X that. And I’ll tell you why. Maybe I’ll even give you my estimate.

Every time one of these “this is what Product X actually costs to make!” articles comes out, I get pissed at the tech media for being so stupid as to believe and parrot the numbers without having any grounds to do so. This article, spelling/grammar issues aside, does a good job of explaining why these estimates aren’t worth the time it takes to type them out.