Tuesday, February 27, 2024
Archived Post

The $350 HomePod costs $216 to build

According to new research from TechInsights, Apple spends $216 to build a $350 HomePod, so margins from the tech giant’s wireless speaker are slimmer than, for instance, those for its iPhone line.

Apple is generating margins of about 38%, according to the product analysis firm. That compares with margins of 66% and 56% for the Google Home and Amazon Echo.

“Apple is compressing their margins a bit, wanting to go big or go home,” said Al Cowsky, TechInsight’s costing manager. “In doing so, I suspect they reduced the selling price from a normal Apple margin in order to sell more units on volume.”

Dennis Sellers
the authorDennis Sellers
Dennis Sellers is the editor/publisher of Apple World Today. He’s been an “Apple journalist” since 1995 (starting with the first big Apple news site, MacCentral). He loves to read, run, play sports, and watch movies.