IHS estimates the cost of materials in the Apple Watch (sports edition) to be $81.2 ($83.7 including the cost of the watch production itself). The most expensive component is the flexible OLED display which costs $20.5 - this is the glass covered display. Other components include the CPU ($10.2), the memory ($7.2) and the power management unit ($5.5).

Apple Watch photo

The display is reportedly made by LG Display, and is a 1.34" diagonal panel with a resolution of 272x340 (290 PPI). The display cost includes TPK's ForceTouch layer. In 2014 DisplaySearch estimated the display would cost $27 to produce (assuming 60% yields).

Besides the square flexible OLED, the Watch has a new custom-designed Apple S1 processor, 8GB of storage, NFC, Wi-Fi, Bluetooth, three sensors (Accelerometer, gyroscope and heart rate monitor) and the new Watch OS. There are several Watch editions, ranging from $349 to $17,000. Apple started shipping the Watch on April 24th 2015.




It should be noted that Tim Cook has commented that the component price estimates he has seen are wildly inaccurate.

Cambridge Isotope Laboratories - Deutreated Reagents and High-Purity Gases for OLEDsCambridge Isotope Laboratories - Deutreated Reagents and High-Purity Gases for OLEDs