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

[powerbook911]

I really don't expect the $10,000 on edition.

I originally thought starting maybe $1500. I guess I was low, I'll admit that, but...

If that is the case ($10,000+), it won't be much of a story because that select number will buy them, and that will be fine.

I do worry though that these stories influence Apple's decision. Maybe they were going to target $1999 for Edition entry models, well, after a story like this, they might bump that up to $2499. A stainless that would have been $599, maybe bump it up to $799.

I do believe Apple is listening and while they have a good idea on pricing, public opinion and media has no doubt either confirmed or slightly nudged their pricing.

One thing I do not get is if 33 percent are Apple Watch, 50 percent Sport, 17 percent are Edition. I don't think you're going to sell 17 percent of 6 million devices as Edition if they are ringing up at $10,000+.


I want either Space Grey Sport, Apple Watch Stainless Steel, or Apple Watch Space Grey. I may be forced to the Sport depending on the pricing for Apple Watch, which is a shame because I want a Sapphire glass.

 

[LordVic]

The Apple Watch's case will only be about 2oz. 18K Gold costs about $900 an ounce. That's only $1800. So, I'd bet The Gold watch comes in at $2499 - $2999. Apple is still making a ~ $250 to $750 excess profit on the gold watch compared to the regular watches.

question is, the entire watch casing weighs 2oz, but is that actually 2oz of gold? or is it 2oz of platic, glass and metal with some gold trim.

how much gold is really in the watch?

seriously. I dont know. I'm genuinely curious, because $5,000+ for a gadget, even with a gold band on it, is quite a lot, your pricing seems more reasonable, but still quite high, unless there legitimately is 2 or more OZ of pure gold

 

[IJ Reilly]

Gruber is merely stating an opinion based on arguably sound analysis. He has a pretty good track record.

Not really. Not either.

 

[Seannyb]

I’m curious regarding the bands.
In their “Introducing Apple Watch” video, Jony mentions “six different straps and a mechanism that makes the straps easily interchangeable” (mentioned around 6:50).

In that simple regard, I had wondered if there would be an à la carte option, or maybe an option to buy an extra band for a particular occasion (sporty vs. dressy). However, on the purely fashion/design end of the spectrum, Apple wouldn’t (and shouldn’t) want people to be able to slap any old band on any watch they choose. We all know that certain combinations would be flat out ugly, so I wouldn’t blame Apple for wanting to limit our options to what looks good. Apple watch wearers are advertising for Apple (by nature of ownership), so Apple would naturally want to preserve their good design-sense by keeping the strap combinations aesthetically pleasing.


Could the interchangable "mechanism" be specific to each watch line?
How else might Apple limit that choice?

I mean, surely we can buy extra bands. That's been stated plainly enough. What's to keep you from buying the "wrong one" unless the means of attachment is somehow slightly different for each line of watch?

But then, someone posted an example in the forums that looks to be a Sport with the leather loop.
Source.

Have you not seen some of the hideous cases people put on their iPhones? I really don't think Apple cares what combination of watch/band you have. I could see them not letting you "pair" a certain watch with a certain band when purchasing, but once you have a watch you can put on any band you like.

 

[69Mustang]

$10,000 is a bargain if you don't think about it.

+1. That was pretty good. Funny and it feeds right into our need to say someone else is wrong.

No, it isn't. I would define something as a bargain if a) it provides immense utility to the owner exceeding its purchase price or b) it has enduring or appreciating value over time. A $10-20K gold smart watch with less than $2K worth of gold and electronics that will be obsolete in a few short years offers neither.

It was a joke that, if read incorrectly, would lead to a post like yours.

On Topic: These $10-20K rumors remind me of a classic sales technique of highballing on the the speculative and coming in right where you want to on the actual offer. That makes your offer seem reasonable by comparison. Also there is definitely far less than 2K worth of gold and electronics in the watch. Probably more like $200 in electronics and $6-700 of gold in the case. The watch will be using a gold alloy, not pure gold. Pure gold is actually a fairly soft metal. Other metals will be added for hardening. Apple even says so on the website. Well they say the steel and aluminum are custom alloys. For marketing purposes they say the gold is "unique formulations of 18-karat yellow and rose gold." Fancy marketing speak for alloy.

 

[shortcrust]

This sounds a bit snobby, but $20k for a watch is vulgar. I don't think Apple will go down that route.

 

[peterdevries]

Lamborghini don’t update the Murciélago every year and spend all their time effectively telling you how the one you bought a couple of years ago is outdated or unsupported.

They don't have yearly update cycles and are not consumer electronics. Your comparison makes no sense whatsoever.

 

[Zimmie]

High-end luxury watches hold their value, but only if they are pampered and maintained.

A Rolex that's been beat up, cracked, scratched, and gone a decade or two without cleaning and maintenance will lose most of its value. Maintenance is NOT cheap on a fine watch.

"Pass it on to your grandchild" is an ideal, and I suspect many fine watches don't last that long, in good working order, in the real world.

It actually depends. Right now, I'm wearing an Omega watch that was given to my grandfather when he retired from Southwestern Bell in 1979. After he died, my dad wasn't too interested, so it sat in a drawer for about 20 years. After around $300 of service and restoration, it's working like new again.

http://watchguy.co.uk/service-rolex-1601-calibre-1570/ has a story of a Rolex that was serviced once in 40 years and was still keeping perfect time when the author decided to open and clean it. On disassembling it, he found that the previous service hadn't even been very good. Technician tracks everywhere. Still, perfectly consistent.

 

[gnasher729]

I was hoping for more of this kind of breakdown:

349/449 for Sport Apple Watch
499/599 for Metal Apple Watch
999/1099 for Gold Apple Watch

The gold watch is supposed to contain about $2,000 worth of gold. It's not gold plated. The body is full 18 carat gold.

I just don't get it. Even the low estimates of the price of raw gold in the gold watch is something like $600 for the smaller gold watch. There is no way the solid gold edition watch is going to be sold for less margin than just about anything that Apple sells.

Or for less margin than any other gold product that you buy at a jeweller's store.

The watch won't be using pure gold, so the cost will be far less. The watch will be using a gold alloy.

The price of $900 per ounce was for 18 carat gold. Which is not pure gold, because pure gold is too soft to use for anything, but a gold alloy. So the cost is exactly what was calculated. 2 ounce 18 carat gold about $1,800.

 

[MacrumoursUser]

Here's the thing. A $20,000 watch is more than I make in a year, so keep in mind that this is coming from someone who will not own one anytime soon.

The problem I have with this is not how much it would cost. There are other $20,000 watches I'm sure. The problem I have is the lifespan of the watch.

A classic mechanical watch at $20,000 -- It would and should last a lifetime. An Apple watch? It has a custom battery inside that lasts a day on one charge. It'll have a maximum life of 5 (optimiscally 10, but at a way reduced volume) years. At that point, what good is the apple Watch going to be? You'll need to replace it with the latest and greatest one, unless Apple included a cool way to replace the battery. That's fine! Just swap out the watch, keep the same band. But by then, the Apple Watch 5 is not going to have the same shape or size; you'll need a new band too. _Its how Apple works._ even if you can replace the battery in it, it'll be obsolete eventually as newer BlueTooth protocols come out - tech becomes obsolete no matter what. A mechanical watch does not rely on software, it relies on a simple battery or wind up function. If taken care of it will literally last for ever.

What's my point? I'm not sure. I just think that while a $20,000 watch is extragavent, a $20,000 smart watch that will go outdated is a scary prospect.

But then again if one is filthy rich then I guess it won't matter anyway...

http://www.chrono24.com/en/omega/speedmaster-limited-edition--id2906114.htm

Thats a watch.

 

[pnoyblazed]

I'll wait for the refurbs to come

 

[Urban Joe]

Stand back. This is just speculation.

However, I would not be surprised if Apple comes up with some type of convoluted pricing strategy. Apple will probably use this opportunity to test out some kind of WTF pricing scheme and see if they can get away with it. If not the pricing will be adjusted for sure.

 

[69Mustang]

The Apple Watch's case will only be about 2oz. 18K Gold costs about $900 an ounce. That's only $1800. So, I'd bet The Gold watch comes in at $2499 - $2999. Apple is still making a ~ $250 to $750 excess profit on the gold watch compared to the regular watches.

The watch won't be using pure gold, so the cost will be far less. The watch will be using a gold alloy.

 

[LordVic]

http://www.chrono24.com/en/omega/speedmaster-limited-edition--id2906114.htm

Thats a watch.

if I had money, I would own one of these... at least!

sadly, I have to stick to my japanese movement watches for affordability

 

[MacrumoursUser]

if I had money, I would own one of these... at least!

sadly, I have to stick to my japanese movement watches for affordability

Its an amazing watch. it will last me forever and software doesn't need to be updated. ever.

 

[moogleii]

Why someone would (hypothetically) waste $10k+ in a smartwatch fad is beyond my understanding.

I feel the same way about Rolexes, yet the consumers justify it somehow. Whatever floats their boat.

 

[OllyW]

I believe their goal is not to sell a few million units, but rather sell hundreds of millions. Cook and his team know all too well that their products command a premium, but they will not alienate the masses with a watch that costs as much as a car.

With respect to their web site, Apple indicates that their metallurgists have crafted a case from 18 karat gold that is twice as hard as standard gold - which can only be accomplished by adding another material. The watch will not be machined from a block of gold. I suspect this will be the first real use of the Liquidmetal technology they acquired in 2010. While there will be a selection of ultra-premium watches, the vast majority sold will be for less than $500.

It's still classed as a solid gold case. The case won't be machined from a solid block, it's bound to be cast as it is the normal manufacturing process for most gold watch cases.

And Liquidmetal is not a unique technology in watch making.

OMEGA’S LIQUIDMETAL® TECHNOLOGY

 

[SMIDG3T]

All I want is the 38mm Space Grey Aluminium Case with Black Sport Band. Don't care about price and I'm sure they'll be plenty of these. Hopefully we can pre-order but seeing it's a brand new product, I can't see it happening.

 

[Seannyb]

I made this speculative price list based in large part on Gruber's speculation:

Image

I really doubt the space grey aluminum model will be $50 more than silver. Do black iPhones and iPads cost more? Nope.

Also, Gruber's list of bands is from cheapest to most expensive. He thinks the leather loop will be more $ than the SS Milanese loop. Now that is comical.

Just my 2 cents..

 

[franzkfk]

$349 Sport; $499 Stainless Steel; $1099 Watch Edition

I'll take a bet, guys.

 

[Piggie]

I imagine Apple will be offering a recycling program similar to what they have now with iPhones, wherein you bring back your gold Watch and they give you some of the value of that gold towards the cost of your new gold Watch.

Apple could stand to make a lot of money this way by reacquiring gold at less than market cost that they will then turn around and sell in a future Watch.

Without some sort of recycling program in place, Apple could be viewed as fostering a disposable gold market, which probably wouldn't look so great.

How much will they give you back for your $1200 worth of gold?

 

[redkamel]

I see Grubers point, but every person that I know that owns a rolex, owns it because it will last forever in terms of function and appearance. They are not planning on updating it. They also wear it for business/formal events primarily.

I have a hard time believing that there are many people willing to pay >5000 for a watch AND have it be an computerized wrist watch that takes texts etc AND be ok with it going out of date AND have it be less dressy than a classic faced watch (no matter what apple says, an electronic watch can't match a classic watch).

 

[freediverx]

I'm fairly certain he was one of the analysts swearing that the iPad would launch for over $1000. That wasn't accurate, and I don't see how most of the predictions here can be accurate.

Link?

I don't recall Gruber predicting a price for the iPad. His commentary prior to the iPad announcement was focused on how such a device would work and what would make people want one in addition to an iPhone.

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But if it's a fashion accessory, how can you spend $10k on one knowing that in 12 months it will be half as thick? $10k for this is absurd.

How can companies sell designer clothes for thousands of dollars knowing they will be out of style in three months? Not to mention that the sort of person who would spend thousands on a dress wouldn't be caught dead wearing it twice, lol.

 

[Chub]

I can probably see the price of the Edition being around $5000-$6000 in-line with entry level steel Rolexes, but not $10,000. I say this as I think it possible that if Apple were to price the Edition around the same price as an entry level Rolex, people may be more inclined to spend money on a gold Apple Watch rather than a stainless steel watch for the same price.

Depending on what stance you want to take on it the price markup from roughly $500 for a stainless steel Apple Watch to a $10,000 gold Apple Watch is huge, when you consider the markup between a stainless steel Rolex and a fully gold Rolex.

 

[JayLenochiniMac]

Besides differences between each band's 38mm and 42mm sizes, Gruber argues this ordering is an indication of price from least to most expensive.

So I'm thinking the regular Apple Watch will come in at least five pricing tiers:

1. Entry: Sport Band, black or white.
2. Regular leather: Classic Buckle, you'll get it in black and you'll like it.
3. Milanese Loop.
4. Deluxe leather: Modern Buckle for 38mm models, Leather Loop for 42mm models. Each with a choice of three colors.
5. Link Bracelet.

You'll pay a premium for color straps and advanced clasp mechanisms, and you'll pay even more for the Link Bracelet.

Wait a minute, so the Milanese loop will be cheaper than the modern buckle and leather loop? That doesn't sound right.