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Apple Watch Revenue Will Likely Be Dominated by Expensive Gold Edition

campingsk8er said:
While it hasn't been publicly confirmed, I have friends that work at Apple who have already gone through the training for it. They have all stated that the Apple Watch is the entry model at $349, (The one with stainless steel/ sapphire display cover). The sports model is the middle of the road model. I know it should be taken with a grain of salt, but there is no reason as to why I wouldn't believe them.
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The watch snobs will tell you that this can't possibly be right, because traditionally a stainless steel watch is perceived to be more valuable than an aluminum watch. I can't say one way or another, but it seems to me that the relative lightness of the Sport version is a feature and consequently could demand a premium.
 
Tankmaze said:
The gold edition is more expensive than a mac pro !!
If I have that kind of money to spend on a watch, would surely go with omega and buy the sport edition apple watch. But that just me.
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Ditto. If the Apple Watch is too expensive, I'd rather buy an automatic watch.
 
Freyqq said:
Why buy a gold version when there will be a new version in a year, rendering it obsolete? The advantage of buying a fancy analog watch is that no new features come out a year later.
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I agree. It's an issue when you blend technology with jewelry. They jewelry value doesn't decrease, but it will when attached to a piece of technology that is no longer current or sexy. If I can't have a gold watch increase in value over 10yrs, I would not want it. Now a $499-$599 stainless? Ok, I keep that a few years, pass it on to a relative and but an updated one.

I'm also wondering what the "upgrade cycle" will be on these. I think since it's dependent on the iPhone anyway, they might do a 2yr cycle for the watch and a 12-13mo cycle for iPhone still.
 
MICHAELSD said:
If the market is flooded with them, people will want to upgrade at the market price. It likely won't have more than a couple hundred dollars worth of gold anyway.
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Make that $2,000 scrap value. That's the estimate by experts.

Mildredop said:
And $4k for the top end one?! Anyone who buys that needs their head examined. A couple of years later (when it no longer runs the latest OS) it'll be worth a couple of hundred if you're lucky.
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I don't buy a watch because of the value it will have in a few years time. I buy a watch because I enjoy wearing it, and that's how I get my money's worth.
 
Tankmaze said:
The gold edition is more expensive than a mac pro !!
If I have that kind of money to spend on a watch, would surely go with omega and buy the sport edition apple watch. But that just me.
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Could not have said any better.
I wonder if Apple will have a trade in program for the gold watches. After two years give a credit for the gold in order to update for a newer model.

That said, if I ever get a Apple Watch will go for the cheaper option and keep my Omega for some moments.
 
Does the Apple Watch go on your iCloud account? How will resale work? Will we be seeing people putting these watches on Craigslist?
 
markieg said:
Please could someone explain the logic of buying a gold/precious metal watch that will be out of date in 2 years??
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It will always be a watch that can effectively run the operating system that it has and display the graphics and apps that it will have available.

It will always be a wearable made of a highly precious metal, so even an "outdated" Apple Watch will maintain a premium in value...if kept in a reasonable condition, even an old watch should still be worth $1,500-$2,000.
 
Mildredop said:
I am so excited to see how this pans out. I have zero interest in the Apple Watch - I think it's hideous to look at as well as solving a problem I don't have.

5-6million?! If they sell this many, I'll be truly amazed. I really hope this is going to be a massive Apple flop.

And $4k for the top end one?! Anyone who buys that needs their head examined. A couple of years later (when it no longer runs the latest OS) it'll be worth a couple of hundred if you're lucky.

Only time will tell...
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... and that's what you need a watch for
 
heryqk said:
I agree. The Apple Watch will never go up in value. As technologically advanced as it is, the value will be based on its features and will be absolute after 2 or 3 generations. Look at the first gen iPhone. No one would want to use it. Now imagine if you paid $4000 for it.
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But what if the inside electronics module is replaceable every year at a nominal fee?
Would you then buy the Edition Apple Watch? I would be more likely then to buy the gold case.
 
KazKam said:
Here's what I want to know.

If I shell out hundreds to thousands of dollars for an Apple Watch Edition, will Apple provide a service to update the internals (like, by bringing it into an Apple store or mailing it in)?

I don't have a problem paying a high price for a watch made of premium materials. The problem in this case is the inevitable year-or-two obsolescence of the tech inside.

Rolex and Omega get away with it because the tech is eternal/mechanical, as it can be for a one trick pony. But wrapping soon-to-be outdated tech in a "gold" wrapper seems insane... unless there's an upgrade path!
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They gotta have some sort of trade in program coming. Makes no sense as you have said to put that much money on a piece of hardware that will be obsolete in two years or less.
 
First of all, the Edition has to be priced at at least $2499 in order to sell anything. The fact that the Edition’s only differentiator is its materials means that it is purely a status symbol, so the Veblen effect comes into play here. If the BoM comes to ~$800 then one should expect a price of between $2500 and $3200 with margins of 65-75%.

I really cannot imagine it being any lower than that. In the UK I would expect a price of £1999 including VAT.

Second, these estimates of $4000 are (IMO) the equivalent of all the reports in 2010 of $1000+ prices for the iPad. With this being said, though, the iPad and Watch Edition are completely different, in that the iPad was mass-market; it'll be interesting to see how this all pans out. Apple could charge whatever they like and thousands of celebrities would pounce.
 
Looking at the options I would say the stainless model will be your base model. The sport is lighter with a stronger crystal so that would rate as an upgrade. Also, the sport is listed second on the apple site. The edition is a no brainer for the top level.

Looking at the options, I think I like the space gray sport with the black band. Good mix of style and function. I also like the stainless with the link bracelet. Heavier but still nice looking. Which ever I get it will be the larger size and most likely the version that costs less. Not to be cheap but I have not worn a watch in about 5 years on a regular basis.
 
HurtinMinorKey said:
Very few people are going to pay $4000 for a device that will be obsolete in two years.
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Agreed - but the real danger I see is to the Apple brand - it's too cheap to be considered a luxury in terms of beings special - the type of person superficial enough to waste $4000 on this, is the same kind of moron who gold plates their toilet brush to coordinate with their gold threaded toilet paper - NOT someone with the wisdom to respect the value of good design and shrewd financial decision making.

I don't want to be associated with these people - I will have to start putting a sticker on my laptop's apple logo - I'm going to be so embarrassed :eek:
 
Sort of taking Gruber out of context- the article really should mention the footnote on his post:

"That’s a very big “if” for Luk and Wakabayashi, as I’ll write tomorrow. ↩"
 
Gasu E. said:
I'm guessing that Apple will offer a service to replace the battery.
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I've actually wondered about that. I really don't think the Apple watch will be like the iPhones and iPads in terms of annual refreshes. If they are just a sporatically redesigned product than a replacement system makes sense as they won't expect users to repurchase the same device.
 
extricated said:
I've wondered about this.
In the keynote, "Apple Watch" will start at $349, not "Apple Watch Sport".
On Apple's website, they are listed in order: watch, sport, edition.
Lowest price to highest?

I don't really think that the sport is the mid-tier watch because the vast majority of pundits say it is the low-end, but since it has never been specifically stated by Apple, I remain hopeful (yet doubtful) that the stainless steel will be the $349 option.
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It's going to be Apple Watch starting at $349. Yeah stainless steel is more expensive but according to my friends at Apple, the Sport will carry a premium because of the lightness and increased durability.
 
All of you saying "this costs more than a mac pro" or "why spend $4K for tech that wont last 2 years" ... etc. etc. etc. are correct. Yes, these facts are accurate BUT you are missing the point of the high end watch. It is not for people like you (and me) that weigh options and make these statements. In some ways, the $4K watch is no different than the gold plated iPhones that sell for thousands and are still just iPhones. The person buying this watch doesnt really see a difference in spending $1K or $4K. That is the buyer for the high end watch. It isnt people who come on this forum and compare the watch to the mac pro. I would never spend $4K on the :apple:watch because I think that would be dumb - but Apple isnt targeting me and they dont need to. I will spend $350 and be happy.
 
Tankmaze said:
The gold edition is more expensive than a mac pro !!
If I have that kind of money to spend on a watch, would surely go with omega and buy the sport edition apple watch. But that just me.
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I see the toddlers typing on regular watches as they use to do with magazines cover thinking they were iPads.
 
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Traverse said:
I wonder (realistically) how much you would get from a gold Apple Watch once the batter is shot in 2/3 years. I wonder if Apple will buy them back.
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Apple already offers battery replacement services, not to mention countless 3rd party providers who do the same. Doubt that'll be do much to the price of a gold Watch when the battery can be replaced under $100.
 
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