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.

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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.”