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Not quite. You are thinking of gross margin. If you have an Apple Watch, you take it to the checkout, and then you either hand your money over, or you put the watch back on the shelf: The difference in money for Apple is the "gross margin". But if everyone put the watch back on the shelf, then Apple wouldn't make zero profit, they would make significant loss because all the development, marketing, store personnel and so on wants to be paid for.

If you sell with zero gross margin, you go bankrupt. You need the gross margin to pay for your development cost first, and after that you make money. Repairs for zero gross margin is fine, because you made your money on the initial sale. I would actually keep the repair cost low, because that way the customer knows "even if the worst possible thing happens, it's not too expensive", and that might be what is needed to convince them.

It depends on how Apple works. The wholesale price likely includes all development and marketing costs. The rest is covering store operation and sending profit back to the mother ship.

When I worked in retail, distribution took a cut as well. They had their own P&L and had to cover running their operation as if it was its own business. Apple doesn't have a lot of stores and may ship direct from factory. I don't know.

In any case, depending on what monies the store returns to Apple after the sale, wholesale is the cost of getting the product to the store's dock. Merchandising, sales, tracking inventory, etc. all come from the profit and take from what was earned as gross margin.
 
So what if for some reason someone showers with and it fails?

It will be the users fault and they will have to deal with it. Apple clearly states the following:

Submerging Apple Watch is not recommended. Apple Watch has a water resistance rating of IPX7 under IEC standard 60529. The leather bands are not water resistant. Water resistance is not a permanent condition and Apple Watch cannot be rechecked or resealed for water resistance. The following may affect the water resistance of Apple Watch and should be avoided:

Dropping Apple Watch or subjecting it to other impacts.

Submerging Apple Watch in water for long periods of time.

Swimming or bathing with Apple Watch.

Exposing Apple Watch to pressurized water or high velocity water, for example, showering, water skiing, wake boarding, surfing, jet skiing, and so on.

Wearing Apple Watch in the sauna or steam room
 
i dunno how many macs or apple gizmos i put in for repaired all covered under AppleCare Protection Plan(s).... most i have to say was clearly an accident... but i didn't say anything... why would i ? Apple fixed it, no charge...

My daughter once whacked my dad's MacBook Pro screen with a bead necklace, the Apple Genius laughed at me and told me good luck getting it repaired. I ended up canceling my AppleCare for a prorated refund and sending it to a third-party for screen replacement.
 
God forbid they find who leaked these - these are internal use only!

They are genuine, though. I was reading through them this morning. Good luck getting your band repaired under warranty, as it's assumed all cases will be a direct result of normal wear and tear. In fact, the whole way we deal with Watch repairs in an AASP is kinda messed up.

----------

My Guess Sadly is that the band's are not covered. i hope I am wrong!

:eek:

You are correct. It would require a CS code in every case to have one repaired/swapped under warranty.
 
These pictures shows that these types of damages are possible.

Like the crown, if you bang your watch against it, it will crack and come off in pieces.
 
Do we know how much they will charge for changing out the crystal/screen?


No screen replacements, only whole-unit exchanges. Out of warranty, the Sport is £156.44, the steel Watch is £266.44 and the Edition is £2,199.44.
 
They had to test hundreds or even thousands of them to create a marketable product. Have to test them under every condition. These pictures weren't likely created just for the warranty guide. More likely they're pictures from various tests like drop testing, pressure testing, abrasion testing, and other things.
I know, but they still had to suffer.
 
No screen replacements, only whole-unit exchanges. Out of warranty, the Sport is £156.44, the steel Watch is £266.44 and the Edition is £2,199.44.

Do you know this for sure? It seems crazy to me that they will change out the screen on an iPhone but not an apple watch? A watch is subject to more abuse than a phone, especially the sport.

If this is truly the case then that is disappointing. You can get a new crystal on any other premium watch on the market I believe.
 
Do you know this for sure? It seems crazy to me that they will change out the screen on an iPhone but not an apple watch? A watch is subject to more abuse than a phone, especially the sport.

If this is truly the case then that is disappointing. You can get a new crystal on any other premium watch on the market I believe.

They would almost need a professional jeweler on staff in every store to handle those sort of very tiny very precise repairs? Probably they just box up the broken unit and give you a new one and let the mothership evaluate the damage (to improve future models) and possible do those repairs in a more equipped facility. Am guessing phones wasn't as much of a stretch for the average local tech.
 
My daughter once whacked my dad's MacBook Pro screen with a bead necklace, the Apple Genius laughed at me and told me good luck getting it repaired. I ended up canceling my AppleCare for a prorated refund and sending it to a third-party for screen replacement.

Although he shouldn't have laughed.... Why would Apple be obligated to fix something you (your daughter, hence your responsibility) destroyed?
 
It will be the users fault and they will have to deal with it. Apple clearly states the following:

Submerging Apple Watch is not recommended. Apple Watch has a water resistance rating of IPX7 under IEC standard 60529. The leather bands are not water resistant. Water resistance is not a permanent condition and Apple Watch cannot be rechecked or resealed for water resistance. The following may affect the water resistance of Apple Watch and should be avoided:

Dropping Apple Watch or subjecting it to other impacts.

Submerging Apple Watch in water for long periods of time.

Swimming or bathing with Apple Watch.

Exposing Apple Watch to pressurized water or high velocity water, for example, showering, water skiing, wake boarding, surfing, jet skiing, and so on.

Wearing Apple Watch in the sauna or steam room

Didn't Tim Cook say he showered with his Apple Watch?
 
Why would all those types of severe damage, like extreme abrasion, puncture holes, etc, be covered in "out of warranty"? Something is not right here.

Because they are severe damage. Your watch isn't magically going to get a puncture hole. And the warranty doesn't cover damage

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They would almost need a professional jeweler on staff in every store to handle those sort of very tiny very precise repairs? Probably they just box up the broken unit and give you a new one and let the mothership evaluate the damage (to improve future models) and possible do those repairs in a more equipped facility. Am guessing phones wasn't as much of a stretch for the average local tech.

BF said all watch repairs are depot (ie shipped out )for the foreseeable future, which his manager said is likely to run a good 3-4 months if not more. After that they might be able to do clearly damage replacements but anything under warranty could continue to be depot. Just like the Beats are will likely stay depot
 
They would almost need a professional jeweler on staff in every store to handle those sort of very tiny very precise repairs? Probably they just box up the broken unit and give you a new one and let the mothership evaluate the damage (to improve future models) and possible do those repairs in a more equipped facility. Am guessing phones wasn't as much of a stretch for the average local tech.

My son just cracked his iPhone 6 screen and they gave him a loaner and sent his phone off for repair. They could send in a watch, without giving a loaner, and repair it for $99. It wouldn't be all that complicated. The crystal just pops off the front and can be replace by a qualified tech in 5 minutes. (There is a video on the web of the watch taken apart)

Maybe a program is under consideration.
 
Debris under display glass or pixel anomaly - upon user claim only: Does that mean upon purchase/receipt only?
 
40 ~ 50 percent profit margin, maybe? I'm just guessing.

Any input from someone more familiar with this sort of thing?
 
Apple Outlines Types of Apple Watch Damage Eligible for Warranty Service

Do you know this for sure? It seems crazy to me that they will change out the screen on an iPhone but not an apple watch? A watch is subject to more abuse than a phone, especially the sport.



If this is truly the case then that is disappointing. You can get a new crystal on any other premium watch on the market I believe.


I'm an Apple Tech, these are the prices they've told us but they're also available via the Apple Support webpage.

Edit - Sorry, thought you were referring to prices. Yes, our guides show that it's a whole-unit exchange. Same as on iPods and iPads. By the time you've taken them apart you've either damaged them or they won't likely go back together as seamlessly as before.
 
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