Well, Apple's profit margin was always known to be quite high so I don't get why people seem to be so surprised by it. I got my Apple Watch Sport SG yesterday and I'm happy with the product so far. However, the band could definitely feel better on the wrist for that price.
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Apple Watch U.S. Sales Estimated at 2.8 Million, Sports Band May Have Base Cost of Just $2
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At least the way I see it is the cases aren't a core aspect of the product. I've had four iPhones and never once bought a case for them, I don't see the point. The Watch can't really be used without the band, and while I understand the reasoning behind selling them separately, not having a low cost option in the range of $30-$60 for an arguably already overpriced accessory is pretty bad IMO.
EDIT: My bad, I was under the impression the sport band was $150. I see it is $50 now which is obviously a high margin but not outside what you would expect for this sort of thing.
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I have never owned a clasp bracelet before, but that does make sense and would not require me to change my eating or exercise habits.
You may need psychological help. I'm serious. You appear to have an addiction problem. I generally love Apple products, but I don't feel compelled to buy every one as soon as it comes out. I make an informed decision as a consumer. If you were "outraged" by the quality or features after you had made your purchase, or were put off by the price before you purchased enough not to buy it, those would be rational behaviors. But you were "outraged" by the price, and yet had to buy it anyway. That's not rational. It sounds like addictive behavior.
How do you know R&D and tooling etc. is just 200.000$ ??? Where do you get your numbers from? Do you have a clue what prototyping costs? Do you know how much they have to pay the people in Cupertino?
The "analysts" have no numbers either. They never designed or engineered anything. You underestimate what needs to be done to create something from the scratch. And if I recon correctly the sportsband only shares the holes with the 'common watch band'. The design is new and has to be created first and designers don't work for 1000$ a month.
That said I also believe that the band is in the range of 5$. But 2$ is just to low. The components for the watch are said to be around 90$ but I think you can double that at the least. The margin for the sports watch will be quite low per watch for the first two iterations.
I'm guessing the less Apple-friendly types don't have such an intense relationship with Apple. They wont get 'outraged' - if they are price conscious they'll just walk away.
Wouldn't that be 200% profit? They paid $1 for the potatoes so that leaves $2 profit.
I have never owned a clasp bracelet before, but that does make sense and would not require me to change my eating or exercise habits.
It does make it easier to get a comfortable fit. It usually needs a tool for adjustment though which is why Apple have probably omitted this feature.
- Do you have a source for a "whisper number" of 7 million watches sold in the US?
- Do you have a reason for taking that number seriously enough to think that it's a "real story"?
That's why I returned my stone leather loop band. It felt and looked greats, but I really had trouble justifying spending $150 on small strips of leather that would fade and wear out. My prior experience with Apple iPad cases and leather covers have made me skeptical one the durability of the glue they use. Th milanese loop on the other hand...
You think the quality of those bands is as good? And you really think you can get all 5 of those steps going on your own, with the money you have in the bank right now?
You can't.
Don't they have to make 22.47M Watches first?The average estimate was 22.47M watches sold in calendar year 2015.
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With a 3-12 week lead time, having sold 10% of that number via mail order is a good start.
Genuine question: So "Configuring an entire computer system on a single chip is an industry first and represents a singular feat of engineering and miniaturisation" is a bold faced lie?
( From: http://www.apple.com/uk/watch/technology/ )
I'd love Apple to bring some new material bands to market by the end of year. The Milanese Loop looks to be most popular but once seeing it in person compared to marketing images I was a little put off.
It does make it easier to get a comfortable fit. It usually needs a tool for adjustment though which is why Apple have probably omitted this feature.
It looks this would add a little thickness. But maybe they can come up with a better implementation of this. It would be nice for future customer.
u forgot:
1. Allergy testing
2. Wear and tear/abrasion testing
3. Stiffness change over time
etc etc
There are hundreds of test for a company like apple. But well, you will always have moaners.
And NO, I havent bought an apple watch and I dont intend to buy one.