An In-Depth Look at Apple Watch Band Options and Potential Pricing

[MeFromHere]

Another thing, if Apple was really targeting the über high end where is the link bracelet in gold? The only band options for gold are leather and rubber.

Go read the Gruber article. (You know, actually read it before commenting.)

He's speculating that Apple will reveal the link bracelet in gold before the watch starts shipping:
"Glaringly omitted is a Link Bracelet. I’d place a side bet Apple withheld it in September, and will unveil it as a surprise option at the event they’ll hold before releasing the watches."

He wrote something similar back in September:
"(Consider too, that Apple has only shown metal bracelets for the stainless steel Apple Watch. Why not a solid gold link bracelet for the Edition, as well? That strikes me as a glaring omission.)"
http://daringfireball.net/2014/09/apple_watch

Gruber isn't speculating that Apple will charge around $20,000 for the gold watch with any of the bands they've shown up to now. His $20k price includes an 18kt gold link bracelet, if they offer one. There's a lot of gold in such a bracelet, and his speculation is not out of line with existing mid-tier luxury watch brands.

Here's a Breitling 18kt gold bracelet. "Retail" $3,500, "on sale" for only $2,670. An extra link costs $320. But this is not a "real" 18kt gold bracelet. The clasp, the ends, and 3/5 of the link pieces are stainless steel!
http://www.authenticwatches.com/breitling-cockpit-pilot-bracelet-361d.html#.VOnNRSlh22w

 

[samcraig]

Having the guts "swappable" while seems logical for upgrades also seems illogical for the fact that Apple tends to make things thinner/smaller, etc. Let's assume that all the internals for the watch take up all the space (otherwise, wouldn't Apple make the device thinner?) Next iteration - if they are able to shrink everything down, I would think any extra space would be used for battery (an assumption I know) - if at all.

I'm not convinced that old parts would fit into a new design.

 

[MyopicPaideia]

Besides the gold and and jewels, think this is the difference between a $1000+ and $20.000+ premium watch.
Image

Hmmmm...you and tons of other people are simpky missing the point here. Apple is targeting this thing as a fashion accessory, by evidence of their marketing strategy.

That Edition is not going to be marketed as a timeless timepiece, get a grip, everyone! It is going to be marketed as a statement making fashion bracelet. There is a sizeable enough market of the nouveau rich that won't think twice about spending $10-20k on the latest fashion statement that Apple can probably sell a few million of these models a year.

This is not even trying to compete with a traditional timepiece. You, along with tons of others on this thread, have bought into the Swiss watch makers' marketing spiel for so long, you immediately attack it from that perpective.

Take a step back. Compare it to a gold bracelet, or pair of earings, a necklace or chain, designer shirt, jacket, shoe, etc. Don't think of it as a competitor to a traditional timepiece.

The reason that traditional watch makers are worried are not because the Apple Watch competes with it in the timeless heirloom demographic. The reason they are worried is because they do compete in the fashion accessory demographic, which is where the much larger market lies. If Swiss watch makers only sold watches to people who were looking for a timeless heirloom, they wouldn't sell many watches.

The Kardashians probably buy 4-5 such watches a year...each! When they see one they like, in a brand name that is "in" then they just take out their credit cards. They then get used a few times and sit in the jewlery box the rest of their lives...what a sad life for such a "special" piece of hand-made timekeeping equipment...right?

 

[TallManNY]

Having the guts "swappable" while seems logical for upgrades also seems illogical for the fact that Apple tends to make things thinner/smaller, etc. Let's assume that all the internals for the watch take up all the space (otherwise, wouldn't Apple make the device thinner?) Next iteration - if they are able to shrink everything down, I would think any extra space would be used for battery (an assumption I know) - if at all.

I'm not convinced that old parts would fit into a new design.

Didnt you just prove your own point? First Apple is going to make the face smaller, right? It will stay with the same 38 and 42 faces for the foreseeable future. If they can make the internals smaller, since the battery is already a weak point (according to the rumors), then Apple might put in a bigger battery and hence stay with the same internal volume.

Also if you are buying an eddition for the prestige, you might want the watch to stay kind of chunky so it stays noticeable.

Also I think there is an assumption that these get updated every year. They might be on something closer to a two year cycle, with the form factor changing every other cycle.

 

[ani4ani]

Hmmmm...you and tons of other people are simpky missing the point here. Apple is targeting this thing as a fashion accessory, by evidence of their marketing strategy.

That Edition is not going to be marketed as a timeless timepiece, get a grip, everyone! It is going to be marketed as a statement making fashion bracelet. There is a sizeable enough market of the nouveau rich that won't think twice about spending $10-20k on the latest fashion statement that Apple can probably sell a few million of these models a year.

This is not even trying to compete with a traditional timepiece. You, along with tons of others on this thread, have bought into the Swiss watch makers' marketing spiel for so long, you immediately attack it from that perpective.

Take a step back. Compare it to a gold bracelet, or pair of earings, a necklace or chain, designer shirt, jacket, shoe, etc. Don't think of it as a competitor to a traditional timepiece.

The reason that traditional watch makers are worried are not because the Apple Watch competes with it in the timeless heirloom demographic. The reason they are worried is because they do compete in the fashion accessory demographic, which is where the much larger market lies. If Swiss watch makers only sold watches to people who were looking for a timeless heirloom, they wouldn't sell many watches.

The Kardashians probably buy 4-5 such watches a year...each! When they see one they like, in a brand name that is "in" then they just take out their credit cards. They then get used a few times and sit in the jewlery box the rest of their lives...what a sad life for such a "special" piece of hand-made timekeeping equipment...right?

I think it is you that wrong. If Apple was selling as a jewellery trinket and people bought it for that purpose, how would they wear it 5 years down the line when the electronics are meaningless, if they are still working, and it no longer works with the latest IOS. It would basically have the functionality of a Casio at best by then and about $500 worth of gold as trade in. I would suggest the Swiss makers are probably more worried about the watch function than the threat derived from a piece of frankly quite ordinary looking (odd?) jewellery

 

[MeFromHere]

... My issue with his new estimate is the WSJ article that implies that Apple has ordered 1 million Edition watches. At $20K that's $20 billion of revenue, ...

You're distorting what Gruber wrote quite bit. Nothing from Gruber suggests 1 million watches at $20,000 each.

First, the Wall Street Journal speculation/leak/report/click-bait (call it what you will) was 5-6 million watches in total, with 1/6 of them being edition watches. (The story also noted that Apple adjusts its supply chain quantities frequently, so these numbers are very subject to change even if they are accurate today.) Thus the WSJ estimates a range of 833,000 to 1,000,000 Edition watches. To support your idea that the estimate is crazy, you mentioned the high estimate and ignored the low one.

Then you took Gruber's $20,000 price speculation and implied that he expects that to the the average selling price for the whole universe of Apple Watch Edition. But he didn't suggest that at all. His $20,000 is for Apple Watch Edition with a speculated 18kt gold link bracelet. Apple hasn't mentioned a gold bracelet and no hint has leaked from the supply chain. If it happens at all, it's reasonable to expect it would be a smallish fraction of the overall Edition sales. 5%? 10%? Dunno, and Gruber didn't guess.

Gruber's hunch (if I may call it that) is $10,000 for an Edition with sport band and $12,500 for and Edition with leather loop. My (wild) guess is that, at those prices, 80-95% of the total Edition sales would fall in that range, with the remaining 5-20% being the $20,000 gold link bracelet.

Combining my wild guess with Gruber's hunch (meaning the result is worth absolutely NOTHING) gives a range of 42,000 - 200,000 units sold at $20,000. My (equally worthless) guess is that Gruber's price speculations for the Edition are about 15% too high. But I know nothing about the subject, and Gruber may know something insider-ish. So please trust Gruber at least twice as much as you trust me on this, and don't trust me at all.

 

[TallManNY]

Why would apple offer upgrades, which it never has in its history, when they can sell you a new product every year or two. Forget the haters, apple could not care less about them, it's the sheep apple cares about.

People upgrade computer components , not watch components, sorry but a company that can sell almost the exact iPhone every two years calling it the "s" version and make record sales, Apple knows exactly what they are doing, Apple will never offer upgrades for the watch.

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He he he.

Yeah apple is taking on the watch Giants, no matter what spin they put on it, still made in a Chinese factory.

Why? Because luxury watches get handed in for servicing on a regular basis. So this is already part of the process. Apple could offer this to the Edition folks only. Walk in hand over watch and $500 and Apple puts a new set of internals (cost including labor, $200) and you come back and pick up a better watch. Apple makes a profit on the transaction and the rich person does two trips to the Apple store (probably picking up a new iPad on a whim while there).

 

[MacrumoursUser]

Why? Because luxury watches get handed in for servicing on a regular basis. So this is already part of the process. Apple could offer this to the Edition folks only. Walk in hand over watch and $500 and Apple puts a new set of internals (cost including labor, $200) and you come back and pick up a better watch. Apple makes a profit on the transaction and the rich person does two trips to the Apple store (probably picking up a new iPad on a whim while there).

Rotary gives a lifetime guarantee.

 

[Col4bin]

Funny how people who state their opinions as fact call other people out for having an over-inflated ego.

Judging from your profile pic I can tell that you're a huge Apple Watch fan, so my intent wasn't to offend. I suggest that before Gruber or any other "insider" goes spouting off on speculative price points, let's hold for the keynote and then judge price against the product's merrits. Agree?

 

[samcraig]

Didnt you just prove your own point? First Apple is going to make the face smaller, right? It will stay with the same 38 and 42 faces for the foreseeable future. If they can make the internals smaller, since the battery is already a weak point (according to the rumors), then Apple might put in a bigger battery and hence stay with the same internal volume.

Also if you are buying an eddition for the prestige, you might want the watch to stay kind of chunky so it stays noticeable.

Also I think there is an assumption that these get updated every year. They might be on something closer to a two year cycle, with the form factor changing every other cycle.

My point was that older devices, if I had to guess will not be upgradeable. Too much on the inside will change.

 

[NoNig]

Upgradability?

I don't know if it's been hiding in the forums, but I haven't seen many people suggesting an upgrade path for the watches - perhaps for the more expensive models?

In my mind, I imagine the front being removed or the bottom (containing the optical sensors) being unscrewed.

Dunno. Just thought it made sense for a 'periphiral' with so much focus on design and individuality.

That way, you could just keep the expensive casing and (perhaps) keeping upgrading the 'computer on a chip'.

The problem would/could be changes in form factor or sensors - or, perhaps not.

 

[Mr. Buzzcut]

This is a real possibility. Why??

The stories about safes getting installed in stores. Why would a $1000 watch be special enough to put in a safe when you have a store full of $2000-$6000 computers?

To justify a safe it needs to get up over the top end Mac Pro price... $6000 or so...

Because you could easily put $50K worth of $1K watches in a backpack. Not so much with iMacs or even MBPs.

 

[crashoverride77]

I don't know if it's been hiding in the forums, but I haven't seen many people suggesting an upgrade path for the watches - perhaps for the more expensive models?

In my mind, I imagine the front being removed or the bottom (containing the optical sensors) being unscrewed.

Dunno. Just thought it made sense for a 'periphiral' with so much focus on design and individuality.

That way, you could just keep the expensive casing and (perhaps) keeping upgrading the 'computer on a chip'.

The problem would/could be changes in form factor or sensors - or, perhaps not.

himhh that would go against Apples philosophy, especially Jony Ive.
Jony Ive was quoted on the new Motorola watch that can be designed and changed by costumers "I believe that’s abdicating your responsibility as a designer"
It seems unlikely that customisation will go further than the wrist bands. Also Im sure the way the chip and other electronics are integrated into the watch it would not be possible to allow for such customisation. Same with the MacBook Pros and the way Ram sits directly on the motherboard and cannot be changed. Its the apple way and although it can be argued that its too restrictive the end results are pieces of hardware that are unparalleled in its quality. Also Judging from sales it seems thats exactly what people want.
Samsung for years playing the "we got a removable battery" game but apparently the new galaxy will have a non removable battery and you can bet that this was as a direct result from trying to compete with apples quality.

 

[Rogifan]

Go read the Gruber article. (You know, actually read it before commenting.)

I did read it. Before it ever showed up here. Everything he wrote is pure speculation. My speculation is the reason we don't see a gold bracelet/band is so Apple is able to keep the price of the Edition watch from becoming ridiculous. Take away the gold band and these $10-$20K prices make no sense.

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himhh that would go against Apples philosophy, especially Jony Ive.
Jony Ive was quoted on the new Motorola watch that can be designed and changed by costumers "I believe that’s abdicating your responsibility as a designer"
It seems unlikely that customisation will go further than the wrist bands. Also Im sure the way the chip and other electronics are integrated into the watch it would not be possible to allow for such customisation. Same with the MacBook Pros and the way Ram sits directly on the motherboard and cannot be changed. Its the apple way and although it can be argued that its too restrictive the end results are pieces of hardware that are unparalleled in its quality. Also Judging from sales thats exactly what people want.
Samsung for years playing the "we got a removable battery" game but apparently the new galaxy will have a non removable battery and you can bet that this was as a direct result from trying to compete with apples quality.

If we want to focus on the luxury watch market what's to say Apple won't allow these watches to be "serviced" where you can take one in and say, have the battery replaces, or the internals upgraded? As I've said in other posts, Apple makes a big deal over the watch bands. I can't imagine they've been designed to become obsolete in a year or two. And there are rumors that Apple is looking to either open smaller Watch specific stores or do store in store concepts. Perhaps that will be the place you go to have your watch "serviced".

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My point was that older devices, if I had to guess will not be upgradeable. Too much on the inside will change.

Considering this is one of the more modular products Apple has designed it's possible you might be able to trade-in the watch component for a new one. As I've said I don't think Apple put all this time and effort into the bands for them to become obsolete in a year or two.

 

[Mackinjosh]

Can't wait to see this ugly watch bomb hard.

 

[samcraig]

I did read it. Before it ever showed up here. Everything he wrote is pure speculation. My speculation is the reason we don't see a gold bracelet/band is so Apple is able to keep the price of the Edition watch from becoming ridiculous. Take away the gold band and these $10-$20K prices make no sense.

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If we want to focus on the luxury watch market what's to say Apple won't allow these watches to be "serviced" where you can take one in and say, have the battery replaces, or the internals upgraded? As I've said in other posts, Apple makes a big deal over the watch bands. I can't imagine they've been designed to become obsolete in a year or two. And there are rumors that Apple is looking to either open smaller Watch specific stores or do store in store concepts. Perhaps that will be the place you go to have your watch "serviced".

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Considering this is one of the more modular products Apple has designed it's possible you might be able to trade-in the watch component for a new one. As I've said I don't think Apple put all this time and effort into the bands for them to become obsolete in a year or two.

Having band options doesn't make it all that modular. What else is modular about the Apple Watch?

 

[AppleScruff1]

Not if they're thousands of dollars.

For some reason the focus has become the high end watch. If it costs $10K+, Apple isn't going to sell millions of them. The $349 model will probably be the biggest seller and that's what most people will buy. I could care less if they make one out of solid diamond and sell it for a million dollars, I have no interest in one at that price. However, I will certainly take a look at the cheaper models and see what I think.

Were that many people here planning on buying one for $2500 - 5000 and now 10K is too much?

 

[Night Spring]

Considering this is one of the more modular products Apple has designed it's possible you might be able to trade-in the watch component for a new one. As I've said I don't think Apple put all this time and effort into the bands for them to become obsolete in a year or two.

Apple could make considerable changes to the watch case while keeping it compatible with the band, the same way iPods, iPhones and iPads were compatible with the 30-pin connector, despite having widely different form factors.

 

[Rogifan]

Having band options doesn't make it all that modular. What else is modular about the Apple Watch?

I think it will be. Having the watch "serviced" with new internals or a new watch that will work with existing bands. I don't believe Apple thinks people will spend thousands of $$ on this and do it all over again in 2 years. But I also think Gruber's pricing estimates are ridiculous.

 

[Chupa Chupa]

For some reason the focus has become the high end watch.

Best I can tell its Apple Watch Derangement Syndrome. There is no more sound logic to it than, say, busting on Mercedes for making a $200K Maybach S600 rather than focusing on the $35K C or CLA.

It's fair to debate the watch itself (what we know about it, which is very little at this point, but finding it futile to argue over the undisclosed cost of the highest end version, especially when detractors have no interest in even the $350 model.

 

[AppleScruff1]

I think it will be. Having the watch "serviced" with new internals or a new watch that will work with existing bands. I don't believe Apple thinks people will spend thousands of $$ on this and do it all over again in 2 years. But I also think Gruber's pricing estimates are ridiculous.

You keep focusing on the thousand$$, What about the watch that people will actually buy in great numbers? What is Apple's track record on upgradability? They solder the RAM on a $3200 laptop, gimped the iPad with 1 GB of RAM and you honestly think they are going to provide an upgrade path for a $349 watch? I'd be beyond amazed if that happened.

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Best I can tell its Apple Watch Derangement Syndrome. There is no more sound logic to it than, say, busting on Mercedes for making a $200K Maybach S600 rather than focusing on the $35K C or CLA.

It's fair to debate the watch itself (what we know about it, which is very little at this point, but finding it futile to argue over the undisclosed cost of the highest end version, especially when detractors have no interest in even the $350 model.

Exactly. Why would I rag on Mercedes for selling a $200K car if I can only afford their cheapest model?

 

[gyang333]

I could see the gold watch (no band) being $1,000-2,000. Then the band itself to match the gold watch being $3,000-5,000. In terms of watches that's not expensive at all.

I just can't see them making the actual devices cost too much - will not help with upgrading to the newest version - and their a better profits to be made in bands then in electronic devices (I would guess).

Assuming the band is made of the same quality precious metals, there is more gold in a case than the strap. Luxury watches have inordinately expensive straps ($350 for a leather strap, but compared to the watch being $5000 it's not too bad). You won't get a case costing less than the strap, that doesn't make pricing sense.

 

[jmgregory1]

I can't believe this thread has gone on the way it has. Anyone on here that thinks Apple is going to sell any Watch for $10k, $15k, $20k is just plain crazy.

There is no way, ever, that will happen, unless they include an iPhone, Mac Pro, MacBook Pro, iPad, iMac, plus include week's vacation with the Watch.

Thinking they're trying to become some jeweler-esque watch purveyor would be throwing out Apple's entire modus operandi, just so they could appeal to an elite crowd that would purchase the Watch Edition in limited quantities, maybe.

Apple is going to pitch the Watch as a must-have add-on to the iPhone and sure, they'll try to sell it as a fashionable accessory (especially in gold), but they're going to price it much like their computers, tablets and phones, because that will make it a product that has appeal with the greatest number of people. In fact, the gold version is likely to be a HUGE hit in China, with a retail price of $2499 (at most).

It will be funny to hear the reaction from all those people who have bought into the hype of a $20k (or $5k or even $10k) Apple Watch Edition, when they're released at a fraction of that price. I'm sure we'll hear "This is groundbreaking for any company to be able to offer a gold watch for less than $20k. Only Apple could pull this off!". Which of course is partly true, but Apple has really figured out supply chain and volume production like few other companies have.

 

[Rogifan]

For some reason the focus has become the high end watch. If it costs $10K+, Apple isn't going to sell millions of them. The $349 model will probably be the biggest seller and that's what most people will buy. I could care less if they make one out of solid diamond and sell it for a million dollars, I have no interest in one at that price. However, I will certainly take a look at the cheaper models and see what I think.

Were that many people here planning on buying one for $2500 - 5000 and now 10K is too much?

Someone on Twitter posted a concern that Apple was creating a "not for you strata" with the gold watch. It doesn't bother me because there is a watch that in theory is for "everyone". If the only watch Apple was selling was the gold one then I would be worried.

 

[gyang333]

Rotary gives a lifetime guarantee.

Rotary is not a luxury watch brand. I'm not even sure if they have automatics or just Quartz but I doubt they offer free servicing on automatic watches.