Apple Employees to Receive 50% Off Apple Watch and Apple Watch Sport Models, $550 Off Gold Model

[spectrumfox]

I hope you know that PUBLIC companies have to answer to share holders. They will tear you apart if you didn't earn that one extra dollar. What you are talking about can apply to private companies. Companies like to grow. You can't grow without spending money and making money.

Apple needs to make as much money as possible for a rainy day. When the iPhone does decrease in sales, they need some cushion. Very bad idea to completely depend on HERO products. I mean...look at Radioshack.

Apple's stock price wouldn't go down and they wouldn't lose their nest egg if they lowered the price of the Apple Watch, who are you trying to kid?

If anything, lowering the price of Apple Watch by 50% would allow them to sell more than they would at its current price. Which means there would be more product in customer's hands, and in turn, more app and accessory sales. Which would likely help raise their stock price. It would only be a good move for them in the long run.

But Apple doesn't want to cater to customers who want devices that cost less. They cater to people who want to spend more money so they can feel like what they purchased is more valuable, and sets them apart from everyone else who doesn't have one.

That's why they're trying to make Apple Watch a fashion accessory. A "look what I have" device. A "that person must have lots of money because they can afford a $400 smartwatch" product. It's just not practical.

 

[CE3]

Apple's stock price wouldn't go down and they wouldn't lose their nest egg if they lowered the price of the Apple Watch, who are you trying to kid?

Unfortunately, if they lowered it now after already announcing prices, the stock probably would go down. Wall Street has the temperament of a 2 year old.

 

[spectrumfox]

Unfortunately, if they lowered it now after already announcing prices, the stock probably would go down. Wall Street has the temperament of a 2 year old.

Oh, they wouldn't lower the price now. It's too soon before the device hits the market. If anything they would likely lower it in 4-6 months if it doesn't reach sales expectations.

"Apple lowers price of Apple Watch, causing sales to soar."

 

[linkgx1]

Apple's stock price wouldn't go down and they wouldn't lose their nest egg if they lowered the price of the Apple Watch, who are you trying to kid?

If anything, lowering the price of Apple Watch by 50% would allow them to sell more than they would at its current price. Which means there would be more product, and in turn, more app sales. Which would likely help raise their stock price.

I'm so glad you don't own a business.

Selling more doesn't mean more profits. Why doesn't Mercedes just drop their prices?

Usually to sell more you have to lower your prices...but you also lose precious 'extra' dollars. Walmart would really love to sell you products with a 200% markup, but they'd lose their advantage.

If Apple lowered their prices...their profits would plummet. Some of the lower cost products they have are not selling like hot cakes (iPhone 5C).

You are also betting on things that could backfire. Android phones are cheaper...but developers also make less than they do on the Apple App Store.

The current Chief of Retail was hired from Burberry. She once said ''In luxury, ubiquity will kill you." Problem is if Apple is everywhere....they are nowhere.

Apple aims to be desirable. They don't want the struggling college kid. They want the college kid that graduates and becomes a well of employee and spends a higher dollar amount.

----------

Oh, they wouldn't lower the price now. It's too soon before the device hits the market. If anything they would likely lower it in 4-6 months if it doesn't reach sales expectations.

"Apple lowers price of Apple Watch, causing sales to soar."

There's diminishing returns though. You can only lower your price so much.

Lowering the Xbox One's price hasn't helped it to soar past the PS4.

 

[spectrumfox]

I'm so glad you don't own a business.

Selling more doesn't mean more profits. Why doesn't Mercedes just drop their prices?

Because Mercedes automobiles are expensive to produce. Apple products, like the iPhone, are not all that expensive to produce. They're made to look expensive on purpose. It's marketing.

If Apple lowered their prices...their profits would plummet. Some of the lower cost products they have are not selling like hot cakes (iPhone 5C).

No, they wouldn't plummet at all. iPhone 5C failed as a product because all Apple did was take the innards of the 5, put them in a plastic case, and lowered the price by a mere fraction. The product was a joke, and everyone saw right through it from the start. If they would have priced the 5C like it should have been priced, it would have sold a lot more.

Apple aims to be desirable. They don't want the struggling college kid. They want the college kid that graduates and becomes a well of employee and spends a higher dollar amount.

So, you admit they intentionally go after people who aren't afraid to spend more money on something even though it might not actually be worth more. There's also a saying "a fool and his money are soon parted."

Lowering the Xbox One's price hasn't helped it to soar past the PS4.

Apples and oranges. Not even the same argument.

 

[linkgx1]

Because Mercedes automobiles are expensive to produce. Apple products, like the iPhone, are not all that expensive to produce. They're made to look expensive on purpose. It's marketing.



No, they wouldn't plummet at all. iPhone 5C failed as a product because all Apple did was take the innards of the 5, put them in a plastic case, and lowered the price by a mere fraction. The product was a joke, and everyone saw right through it from the start. If they would have priced the 5C like it should have been priced, it would have sold a lot more.



So, you admit they intentionally go after people who aren't afraid to spend more money on something even though it might not actually be worth more. There's also a saying "a fool and his money are soon parted."



Apples and oranges. Not even the same argument.

I'm done with you. Somehow Mercedes is justified but Apple isn't. So apple didn't just spend millions on R&D for the watch and other products or buy a $2 billion+ campus? I'm done. Good night.

If you can't afford the Apple Watch or Apple Products, go find a higher paying job.

I for one will be spending $700+ on a Apple Watch with Milanese Loop. I know it goes back to hiring more employees and contributing to the stock I purchased.

 

[spectrumfox]

I'm done with you. Somehow Mercedes is justified but Apple isn't. So apple didn't just spend millions on R&D for the watch and other products or buy a $2 billion+ campus? I'm done. Good night.

If you can't afford the Apple Watch or Apple Products, go find a higher paying job.

So now we're also expected to help Apple build a new gigantic eyesore campus in the middle of the Silicon Valley because they feel like being extravagant?

I can afford Apple Watch and Apple products just fine. Thank you for your concern. I just won't purchase something at a price I don't feel is reasonable.

That doesn't make me poor. It makes me smart with my money. $350 for a smartwatch is not reasonable. $250, on the other hand, would be.

Now imagine, if they dropped the price of the watch by $100, they would have at least one more sale if not many more. I would be willing to bet that people who are on the fence would suddenly become much more interested. Apple would still make a profit, just less of one. Not to mention it would undercut Motorola's less-capable $299 smartwatch, making the Apple Watch look much better by comparison. It would not suddenly be considered a loss, and it would not plunge Apple into a recession.

 

[daniesy]

What about developers?

 

[venom600]

So now we're also expected to help Apple build a new gigantic eyesore campus in the middle of the Silicon Valley because they feel like being extravagant?

I can afford Apple Watch and Apple products just fine. Thank you for your concern. I just won't purchase something at a price I don't feel is reasonable.

That doesn't make me poor. It makes me smart with my money. $350 for a smartwatch is not reasonable. $250, on the other hand, would be.

Now imagine, if they dropped the price of the watch by $100, they would have at least one more sale if not many more. I would be willing to bet that people who are on the fence would suddenly become much more interested. Apple would still make a profit, just less of one. Not to mention it would undercut Motorola's less-capable $299 smartwatch, making the Apple Watch look much better by comparison. It would not suddenly be considered a loss, and it would not plunge Apple into a recession.

So what you're saying is that you've set an arbitrary limit on how much you think the Apple Watch should cost and are upset because their pricing doesn't meet your expectactions?

 

[FeelingGood]

This only proves how HIGH a markup consumers are paying for an Apple Watch.

Huh? This proves absolutely nothing of the sort. Apple could easily take a small loss with that deal to show appreciation to their very deserving employees.


Indeed, it's not so much a loss as it is an extremely smart and strategic investment in their employees' happiness and their resulting ability to now share, with no doubt all the enthusiasm that comes with personal ownership, their own experience of the watch with customers. Brilliant indeed.

If it proves anything, it's your utter lack of understanding of Apple's culture and marketing wizardry.

 

[spectrumfox]

So what you're saying is that you've set an arbitrary limit on how much you think the Apple Watch should cost and are upset because their pricing doesn't meet your expectactions?

It's not all arbitrary when you think about it.

I, as a consumer, have evaluated the specs and capabilities of the product and compared it to other like-products on the market, and also compared prices.

Based on my personal preferences, I don't feel $350 (or $400 in my case, as I would purchase the 42mm) is a price I would feel comfortable paying. It's a decision I have made as a potential customer. I feel Apple overpriced the device, but I'll be happy to give it a chance when it comes down in price.

 

[FeelingGood]

Alternative: Consumers are getting Robbed.

Yes, as in getting robbed of the opportunity to waste any more of their money on any of all the previous failed attempts at creating a truly smart watch form the likes of Samdung and all the other losers...

Try again.

 

[spectrumfox]

Yes, as in getting robbed of the opportunity to waste any more of their money on any of all the previous failed attempts at creating a truly smart watch form the likes of Samdung and all the other losers...

Try again.

I feel like I'm back in high school again.

 

[FeelingGood]

Looking to drive more sales. I think Apple is nervous.

LOL, if Apple is nervous about anything it is much more likely about keeping up with the demand...

 

[spectrumfox]

LOL, if Apple is nervous about anything it is much more likely about keeping up with the demand...

Apple is always nervous about keeping up with the demand. It helps make for better sales when the impression is that their products are hard to come by.

 

[Serban]

they also did the same with the first ipod and iphone(for free) and ipad

 

[deckard666]

LOL! Funniest comment of the thread so far.

Yeah especially as this thing is going to own the smart watch market by the end of the launch weekend and it interests me that none of the other smart watch lot aimed for the high end, it was almost as if they gave up before they started

 

[peterdevries]

The only thing that bothers me about Apple products is how overpriced they are. I use them on a daily basis and I like them a lot. It's why I keep buying them.

I just wish they would be a bit more honest with their pricing so I don't have to keep waiting for price drops and sales.

Along the same lines, it boggles me how much some people defend Apple's incredibly high profit margins, knowing full well they overcharge for just about all of their products.

Unless you're a shareholder, why would one care about how large a company's profit margin is?

It's baffling.

Why should Apple lower their prices if millions of people buy their products (including you) anyway? Apparently Apple prices their products just right. They sell millions upon millions of products to happy customers and make billions of profit. Win - win.

 

[FeelingGood]

Y

I fully expect the Apple Watch to drop in price too after the first 4-6 months. It's just not priced competitively.

LOL, priced competitively with what products? There is nothing out there remotely close to compete with the Apple watch... You make no sense, bro.

 

[spectrumfox]

LOL, priced competitively with what products? There is nothing out there remotely close to compete with the Apple watch... You make no sense, bro.

That's your opinion, and you're of course welcome to it.

 

[unplugme71]

say item costs company $100
100% markup is $200

50% off $200 is $100

I guess you didn't read the article.

I'm saying they (Apple) making 100% markup still after the 50% discount.

So if it retails $500, sold for 50% off, the cost to Apple would be $125 (if 100% markup post discount).

 

[spectrumfox]

Why should Apple lower their prices if millions of people buy their products (including you) anyway? Apparently Apple prices their products just right. They sell millions upon millions of products to happy customers and make billions of profit. Win - win.

I tend to buy Apple products after they've come down in price a little. They're usually too expensive when they are released. I'm sure Apple would prefer it if I paid full price and didn't wait for a discount or sale.

 

[peterdevries]

I'm not confused. I'm just saying that it doesn't seem right.

Especially knowing how much the gross margin of an iPhone is. Something tells me Apple makes PLENTY of money to cover the cost of anything having to do with the product they're selling, and much more.

Wel, no offense intended but you are confused. I urge you to look up how businesses account for revenue and profits and how they pay their bills. As someone said before, it is business 101.

You might think some elements are not "right" but you are wrong. A business pays for ALL its expenses using the revenue generated from selling their products. Where should that money come from otherwise?

 

[spectrumfox]

Wel, no offense intended but you are confused. I urge you to look up how businesses account for revenue and profits and how they pay their bills. As someone said before, it is business 101.

You might think some elements are not "right" but you are wrong. A business pays for ALL its expenses using the revenue generated from selling their products. Where should that money come from otherwise?

According to a teardown report from research firm IHS, the components and manufacturing cost of a 16GB iPhone 6 cost Apple $200.10. The device is selling for $649 in the U.S. without a contract with a wireless carrier. That gives the device a profit margin of about 69%.

The iPhone 6 Plus, which costs $100 more than its smaller cousin, costs just $15.50 more for components and manufacutring, according to IHS. That’s a 71% margin.

Apple also spends money on research and development, software, shipping, marketing, licensing and other costs. But even with all expenses included, Apple’s margins are huge.

https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=real cost of iphone 6

http://time.com/3426087/apple-iphone-6-cost/

I don't think I'm all that confused. I do appreciate your faux concern though.

 

[CFreymarc]

With the amount of profit they have, they can easily afford to give one to every employee. This half off to employees is bull.