Bad Invesment?

[Benz63amg]

So i have the Series 2 SS 42mm, i owned the Gen 0 apple watch in SS 42mm as well for a year and i sold it for 300$ when the Series 2 was announced so i lost nearly 350$ on the Gen 0 when i sold it,

Is the apple watch in general a bad investment? Unlike true luxury watches which usually go up in price over the long term, it appears like the apple watch is just like any other type of electronic that drastically gets a hit when a newer improved model of it comes out, i like the apple watch Series 2 alot, Its a great notification tool, Health monitoring tool and the SS model certainly has a nice quality feel , its just that i had this thought come up whether its a bad investment in general to buy an Apple Watch full price or buying an apple watch altogether

 

[OllyW]

While they don't lose money at the same rate as the Apple Watch, most conventional watches don't go up in price and it usually takes a few years for the ones that do to really appreciate in value.

 

[3lionsbecks]

yes. If you thought otherwise you didn't really think it through. It is not like a traditional watch that can last for a decade or more. Any apple watch will be quite outdated in 3-5 years. Probably worth only a fraction of what a replacement will cost at the end of its lifecycle.

It is a pure luxury not an investment.

 

[Thai]

So i have the Series 2 SS 42mm, i owned the Gen 0 apple watch in SS 42mm as well for a year and i sold it for 300$ when the Series 2 was announced so i lost nearly 350$ on the Gen 0 when i sold it,

Is the apple watch in general a bad investment? Unlike true luxury watches which usually go up in price over the long term, it appears like the apple watch is just like any other type of electronic that drastically gets a hit when a newer improved model of it comes out, i like the apple watch Series 2 alot , its just that i had this thought come up whether its a bad investment in general to buy an Apple Watch full price

Who told you that true luxury watches go up in value?! Omega Hourvision that i had drop by over 50% in value in just over one year. My Rolex dropped in price too...but not as bad as Omega. Unless you own a rare Rolex, PP, or AP, prices drop with luxury watches.

 

[macdragonfl]

Watches are not investments, in very few instances do they go up in value. It takes a long time usually for the ones who do. A trip to any pawn shop will show you that.

 

[bunnicula]

Watches are not investments, in very few instances do they go up in value. It takes a long time usually for the ones who do. A trip to any pawn shop will show you that.

This is my observation as well. Watches are to be worn. They're not a stock portfolio.

 

[exxxviii]

Is the apple watch in general a bad investment?

The real questions are how fast do used values drop, and what is the floor value of a used watch? It appears that the AW depreciates pretty severely. I paid $400 for my AWS0 sport. With BB selling them new for $220, my hunch is that I would struggle to get more than $125 for my used one. So that is a ~70% drop from introduction to the next gen and ~18 months. A big part of this is a result of the major discounting by non-Apple retailers and then the AWS1 that kills the value of the S0 watches.

Still, I would expect that 50% depreciation from release-to release to be the best case, especially if Apple continues a >12 month refresh cycle. I sell my iPhone on CL every year and upgrade to the latest. This costs me about 35% in lost value each year. But, I want the latest phone tech.

 

[OllyW]

The real questions are how fast do used values drop

The bottom fell out the used market when the S1 & S2 was announced. I should know because I picked one up at a third of the original price.

 

[bunnicula]

The bottom fell out the used market when the S1 & S2 was announced. I should know because I picked one up at a third of the original price.

I doubt that would have happened if BB hadn't discounted them so severely. Put another way... one day BB was offering 240 dollars on a trade for my 42MM SS WSB and a few days later? They were offering 125 dollars on a trade.

But, they'd discounted their first gen stock by then. I think that if this doesn't happen every year, the depreciation won't be so severe.

 

[8692574]

Watches are not investments, in very few instances do they go up in value. It takes a long time usually for the ones who do. A trip to any pawn shop will show you that.

You do not make any investment to sell in a pawn shop....

Pawn shop are there to take advantage of your needs, they are the only one making the investment

 

[JayLenochiniMac]

This isn't really any different from buying the middle tier iPhone for $749 and selling it after a year for $450 or so. iDevices/Apple Watch (or any tech devices for that matter) are disposable and will be priced accordingly.

Rolex retain their value because they keep raising the price of new models.

 

[exxxviii]

The bottom fell out the used market when the S1 & S2 was announced. I should know because I picked one up at a third of the original price.

Yep. After watching the significant discounts about 6-9 months (I cannot remember exactly) after AWS0 launch, I decided not to buy a new AWS2 at launch. I will wait for what the discounts do this go around, and either buy a new, discounted AWS2, or I will buy a used AWS2 for a ton below Apple's MSRP. IIRC, I think people were regularly finding used AWS0 watches in the $250 range this time last year.

 

[OllyW]

I doubt that would have happened if BB hadn't discounted them so severely. Put another way... one day BB was offering 240 dollars on a trade for my 42MM SS WSB and a few days later? They were offering 125 dollars on a trade.

But, they'd discounted their first gen stock by then. I think that if this doesn't happen every year, the depreciation won't be so severe.

I very much doubt the Best Buy clearance sales in the US have had much influence on the UK second hand market.

 

[intofx]

All electronics are bad "investments" They are a depreciating assets. If you want to invest in electronics you need to buy stock in the manufacturing companies. If you want to invest in watches you need to buy limited edition or vintage models that are very expensive. Remember, markets move. Whats hot today is not tomorrow so know what you're buying before you invest.

 

[bunnicula]

I very much doubt the Best Buy clearance sales in the US have had much influence on the UK second hand market.

Possibly not, but eBay is worldwide and people can see how much we pay in the US for our devices. Global economy and all.

 

[Pagemakers]

I normally sell my iphones, ipads, mac laptops and PCs for about 70% of what I paid for them after a year to eighteen months.

I'd be lucky to get 30% for my Apple Watch especially after the recent price reduction.

It looks older and more scraped than my 10 year old Breitling which has doubled in price.

 

[OllyW]

Possibly not, but eBay is worldwide and people can see how much we pay in the US for our devices. Global economy and all.

I doubt it, it would kill the second hand value of all Apple products if our eBay was influenced by what you pay in the US.

 

[bevsb2]

Even Best Buy can't make money on the 1st generation watch. I purchased one and thought it was a great deal, but many models that I looked at before buying are still available even at those discounted prices and they are brand new. People want the latest and greatest. The Apple watch is like any other electronic device and its value will sharply decrease when the next generation is released. That doesn't mean that it is not a great watch and a pleasure to have and use - just enjoy it and forget about resale value.

 

[Thai]

It looks older and more scraped than my 10 year old Breitling which has doubled in price.

Breitling doubling in price?! No. You will not find one soul willing to pay double what you paid for your 10 yr old Breitling. Breitling is a near luxury watch brand...it does NOT hold value.

Scraped? Probably because you are wearing it more than Breitling.

 

[Pagemakers]

How can I wear a 12 month old watch more than I've worn a watch for 10+ years?

That watched used to be on my wrist 24/7. Shower, sea, you name it and yes it worth far more now than it was when it was purchased.

 

[bunnicula]

I doubt it, it would kill the second hand value of all Apple products if our eBay was influenced by what you pay in the US.

Is it possible that there just isn't much of a secondary market where you are, then?

 

[OllyW]

Is it possible that there just isn't much of a secondary market where you are, then?

There's loads of them for sale and they are still selling but the prices have plummeted since the new models were announced.

 

[bunnicula]

There's loads of them for sale and they are still selling but the prices have plummeted since the new models were announced.

Yeah.... that happens with phones, too. Just maybe not as fast. I remember when I bought the first gen iPhone, then jailbroke it and sold it for more than I paid, but those were the days when nobody could use one of those unless they were with AT&T and not everyone know how to JB and unlock them.

Good times, good times.

The watches are always gonna have a lousy resale value. Maybe the Editions and the Hermes models will be exceptions, but they'll still sell for way less than they were when bought new.

That said, my Tag Heuer dropped to 1/3 of its value in 2 years after purchase and it was a 3000-dollar watch. It's probably worth 500 bucks now, if I'm lucky. And, it's an analog with a diamond face.

Eh. Watches are just not investments most of the time.

 

[OllyW]

That said, my Tag Heuer dropped to 1/3 of its value in 2 years after purchase and it was a 3000-dollar watch. It's probably worth 500 bucks now, if I'm lucky. And, it's an analog with a diamond face.

It must have been an unpopular model because mechanical TAG Heuer watches don't usually suffer that much depreciation. Their quartz watches do tend to lose a lot more though.

 

[Thai]

It must have been an unpopular model because mechanical TAG Heuer watches don't usually suffer that much depreciation. Their quartz watches do tend to lose a lot more though.

Oh yes they do. See my Omega HourVision...a pinnacle watch from Omega (a more luxurious name than TAG or Breitling). It dropped to 50% easily within 2 years.

Again, the ONLY "common" luxury watches that hold value decently is Rolex, PP, and AP. Note that i say HOLD, not go up in value.
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How can I wear a 12 month old watch more than I've worn a watch for 10+ years?

That watched used to be on my wrist 24/7. Shower, sea, you name it and yes it worth far more now than it was when it was purchased.

Look, Breitling uses the same 316l alloy. It is scratched just like anything else made of 316l.

How much have you spent on regulating and service on your Breitling within that 10+ years?

As for your Breitling value...i doubt it. Prices of new watches have gone up BUT that does NOT mean that YOUR old Breitling value has gone up. LOL. My Rolex yacht master and TOG have certainly not gone up in value...you're telling me that your Breitling value is higher than Rolex?

What Breitling model you have?