Apple Watch Edition - How a $10k watch could be a guaranteed success

[cariacou]

I have seen lots of threads debating on the Edition Watch price. Will it be $1k, $2k, $5k, ...?

I actually don't think any of these prices are on par with Apple's intentions.
Apple is a luxuary company.

think about their products: they price it at the very high end prices of the market. with very high quality hardware & software that make people buy it anyway.

now think about watches. what are the classics out there?

Omega, $2k watches
Rolex, $8k watches
etc...

now obviously people who buy these make their minds because of a "lifetime" investment.

An electronics purchase will never be that.


But what if Apple created a new business model for watches, like dealers do for cars. A "leased" Apple Watch Edition: the Edition AppleCare Program.

Priced at $10k, and you get to exchange it for the new model if/when it comes out.
Spot guaranteed on the release date with your choice of size/color.

For every year after the 2-year initial Edition AppleCare, you will pay $1k/year for unlimited watch services/repairs.
The Edition AppleCare also including a free exchange for the new model when it comes out.


What do you guys think about that model?

 

[Piggie]

Back to reality time:

Sorry.

Apple is NOT a luxury company, not in ANY way shape or form.

They are a MASS mainstream consumer market company that wish to sell items in 10's or 100's of millions.

Their trick is, and the one you and many fall for, if they make items for mass market, just above the level of many competitors.
Perhaps selecting a slightly higher grade of finish material than others may do.
That is questionable at the very top end.
The price them a little higher, just a little to lift them just that step up from what some may wish to pay, but not so far as it becomes out of range for the masses.
And their biggest trick, if you wish to call it that.
They market the items very very well.
Their presentations are very polished, what they say is VERY carefully scripted.
The have top talented artists and designers to render images of the items on their web site, and lay it out in a beautiful manner.

You end up, with a product that is presented to the consumer in a luxury manner, which is the trick, and a product, just often kept just that tiny bit above others, and priced at the upper range plus a few dollars.

But targeted totally at the masses, for mass market sales.

 

[gochi]

wouldn't buy a watch that is 10k

 

[Ddyracer]

Back to reality time:

Sorry.

Apple is NOT a luxury company, not in ANY way shape or form.

They are a MASS mainstream consumer market company that wish to sell items in 10's or 100's of millions.

Their trick is, and the one you and many fall for, if they make items for mass market, just above the level of many competitors.
Perhaps selecting a slightly higher grade of finish material than others may do.
That is questionable at the very top end.
The price them a little higher, just a little to lift them just that step up from what some may wish to pay, but not so far as it becomes out of range for the masses.
And their biggest trick, if you wish to call it that.
They market the items very very well.
Their presentations are very polished, what they say is VERY carefully scripted.
The have top talented artists and designers to render images of the items on their web site, and lay it out in a beautiful manner.

You end up, with a product that is presented to the consumer in a luxury manner, which is the trick, and a product, just often kept just that tiny bit above others, and priced at the upper range plus a few dollars.

But targeted totally at the masses, for mass market sales.

He does have a point though. Apple might not be a luxury company but they are in the high end market for consumer devices. Especially in India and China.

 

[Piggie]

He does have a point though. Apple might not be a luxury company but they are in the high end market for consumer devices. Especially in India and China.

Are Apple any higher end than the top Android Handsets in those countries?

High or higher end, is a long way from Luxury.

A high end ford, is a million miles away from a Ferrari or Lamborghini.

 

[cariacou]

Are Apple any higher end than the top Android Handsets in those countries?

High or higher end, is a long way from Luxury.

A high end ford, is a million miles away from a Ferrari or Lamborghini.

that makes sense. I agree with you towards Apple being a high end brand.

That doesn't prevent them to release luxury products however. And I think they clearly announced their desire to head that way at least with the Apple Watch Edition.

I would be surprised if they manage to keep their Watch Edition customers without having an upgrade policy for a fraction of the Watch price.

 

[Piggie]

that makes sense. I agree with you towards Apple being a high end brand.

That doesn't prevent them to release luxury products however. And I think they clearly announced their desire to head that way at least with the Apple Watch Edition.

I would be surprised if they manage to keep their Watch Edition customers without having an upgrade policy for a fraction of the Watch price.

I just think it's hard to imagine a v1.0 of anything technical and mass market as being a luxury item simply because it's in a gold box.

It's going to be ancient worthless tech after a few years.

iWatch 1 to iWatch 6
iPhone 1 to iPhone 6
iPad 1 to iPad Air2

If a technology is established like a mechanical watch, then this is not the case.

For computers, apart from a gold Apple watch still in it's box, in 50 years time, I struggle to see it being a long term keepsake as it's functionality will be so poor. and it's no better made than the bottom of the range, other then the metal shell around it's sides.

 

[Ddyracer]

Are Apple any higher end than the top Android Handsets in those countries?

No, about equal. I would consider top end Android brands like Xiaomi and Samsung, on par with their flagships.

 

[bounou]

I have seen lots of threads debating on the Edition Watch price. Will it be $1k, $2k, $5k, ...?

I actually don't think any of these prices are on par with Apple's intentions.
Apple is a luxuary company.

think about their products: they price it at the very high end prices of the market. with very high quality hardware & software that make people buy it anyway.

now think about watches. what are the classics out there?

Omega, $2k watches
Rolex, $8k watches
etc...

now obviously people who buy these make their minds because of a "lifetime" investment.

An electronics purchase will never be that.


But what if Apple created a new business model for watches, like dealers do for cars. A "leased" Apple Watch Edition: the Edition AppleCare Program.

Priced at $10k, and you get to exchange it for the new model if/when it comes out.
Spot guaranteed on the release date with your choice of size/color.

For every year after the 2-year initial Edition AppleCare, you will pay $1k/year for unlimited watch services/repairs.
The Edition AppleCare also including a free exchange for the new model when it comes out.


What do you guys think about that model?

I think you are missing the point, a big part of what makes the edition attractive for the people who will end up buying it is the very thing you think is a problem and want to solve.

The limited life span in a watch that expensive makes it even more exclusive, it screams "i'm so rich i can blow 5-10k on a watch i will only use for one of two years".

For Apple the limited lifespan of the edition watch is not a problem, it's a feature.

 

[Piggie]

I think you are missing the point, a big part of what makes the edition attractive for the people who will end up buying it is the very thing you think is a problem and want to solve.

The limited life span in a watch that expensive makes it even more exclusive, it screams "i'm so rich i can blow 5-10k on a watch i will only use for one of two years".

For Apple the limited lifespan of the edition watch is not a problem, it's a feature.

So why don't rich people and celebrities show off other way our of date computer equipment that has a gold case?

I only see those people with classic expensive items, aka rolex etc, and the VERY latest, top model of any new bit of kit.

They may be rich, but they are not stupid (well not most of them)

Brandishing their iPhone1 in gold.

 

[SHNXX]

lol.

For people who think this is possible, do you own watches that are above $10000 USD?

----------

Apple is NOT a luxury company, not in ANY way shape or form.

i agree.

 

[mtmac]

Not only is Apple not a luxury company, they would be foolish to want to be viewed that way. They would likely put off more people than they would attract. The gold watches will be pricey, but nowhere near that high. Even then, without an upgrade program, few would consider buying a gold watch that would be outdated in a few short years. Premium product yes, luxury no.

So $10k guaranteed success? If success is measured by alienating your market, then yes.

 

[uwdude]

Apple is considered premium, not luxury. And also because this is a digital watch with limited life, they're going to have to price it as such, mostly in the $350-$1000 range. Much more than that, and it becomes seen as an overpriced toy instead of aspirational.

 

[Rogifan]

My guess is the watches will be more expensive than most people think but not something so ridiculous that they're laughed off the stage. I do wonder if Apple will do something unique either with a trade in program or the ability to replace the chip in the watch. All the technology is packaged in something that looks like it might be replaceable. Something John Gruber speculated.

 

[kmj2318]

My guess is the watches will be more expensive than most people think but not something so ridiculous that they're laughed off the stage. I do wonder if Apple will do something unique either with a trade in program or the ability to replace the chip in the watch. All the technology is packaged in something that looks like it might be replaceable. Something John Gruber speculated.

Image Image

That's an interesting point. And why would they show someone holding the chip?