Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
9TO5Mac -AW, Apples most profitable product ever
- Thread starter Locoboof
- Start date
- Sort by reaction score
That's silly.
I'd not be surprised if Apple has even made 1 cent profit yet.
Just think how much they have invested since the day they though "let's make a watch" and how many they will have to sell the recoup all of that outlay.
The article is of course talking about gross margins per unit. Not accumulated income. That would be stupid, considering the iPhone the last 5 years.
This is the most successful "smart-watch" ever made by initial indications, and all you have to say is this comment?
You have knocking this thing since the beginning. I don't get all the negativity you associate with this product.
So when they have great numbers on something we start deducting R&D? When we don't even know the amount? Cmon. The number is the number.... Maybe you can give us a amount to deduct from the 2B,before they can call it a success.
You remind me of the guy in here,once they announced 2M in pre-orders who said. "That's silly,they haven't accounted for returns"
----------
My thoughts exactly....... Hate it or love it,the numbers alone are amazing.
Sorry but this is not good for us i think.They say that the watch is the more profitable product, not for the sales only, cause they charge $1000 or $350 for almost the same watch, like some of you say, they sell a leather band for $150 and it doesn't look like something that cost to much to make.
its crazy how much money they make with that $10.000 watches in that link, they know how to make business hehe
Anyway 3M is a great number obviously
its crazy how much money they make with that $10.000 watches in that link, they know how to make business hehe
Anyway 3M is a great number obviously
I'm not knocking the product, I'm saying that articles way of thinking is stupid.
So you make cakes and you want to start making donuts.
So you spend 2 years with your staff planning the donuts out, hundreds of staff being paid to work on the project.
You then, find land to build your donut factory, build it, costs you 100 million dollars to make this plant, you then spend the next 6 months promoting the product, spending even more millions to get the public to want them.
You launch and sell 2 million.
yay
Long way to go yet, and a long long way before your costs are recouped and you start making any profit, you may make a few more million and the public go off donuts.
Android wear smart watches sold 720,000 units last year. Whatever apple did to make this happen was worth it and its obvious. If everyone thought like you, we'd still be using flip phones and wearing watches that "just" tell time...
They sold 3M. They made about $2 Billion. I'd say that's pretty damn good and probably covered a lot, if not all of their R&D, etc. And that was just the first two weeks.
Actually, aside from people using AMEX cards, consumer accounts haven't even been charged yet, have they? So they may have on paper had big sales (no one knows the actual numbers), until they start charging cards and shipping units, I am in Piggie's corner...they haven't started to get their return on investment yet. Even then the first watch is the most expensive, the last one will be the cheapest (read most profitable). It is entirely possible that the first million or two watches are at cost and they are counting on watch sales (and app store, and accessories, and licensing) in the future to be where the real money is.
Who knows. Just charge my card and give me a delivery date already!
I don't think the first version will generate a lot of profit. They've spent millions if not billions on developing, researching and testing hardware and software, creating manufacturing facilities etc. for it. You cannot just calculate their profit by simply doing (retail price)-(BOM)...
I know, some people just don't get it.
I never said poor launch, I was just pointing out that "Clear Profit, Per device sold" vs the costs in getting to that point does not equal..... Yay Apple are rich due to initial sale numbers.