For those complaining about Apple being snobbish...

[KPOM]

Mark my words. The Edition won't be selling well. Apple might spin it as a "wow, it's sold out always," but that'll be because they're making hardly any of them.

But let's get to the bottom of what's really going on here. Why is it so hard for the Apple faithful to say "Hey, I really like this watch, but the gold one at 10x + the price is stupid." I haven't heard a single good rationalization for why Edition exists, or why it'll be popular. Not one. If I hear one, I might be inclined to change my position on this, but nobody has rationalized it yet.

Burberry sells 18kt gold watches for $15,000 with leather bands. They also sell similar gold-plated watches for $3,000 and stainless steel watches for around $500-$1,000. I'm sure Angela Ahrendts knows the mix, and could have guided Apple as to how many they might realistically sell relative to the other models.

Also, given that the dedicated Apple Watch stores are outside the US, we need to consider the possibility that foreign markets will be more important. London, Paris, and Tokyo (particularly London) have lots of very wealthy people, including lots of foreign money.

 

[ninethirty]

Look at my earlier remarks about Burberry watches. I've lived in London, and spent plenty of time in Europe, especially Paris. The Edition is going to be a flop.

Burberry sells 18kt gold watches for $15,000 with leather bands. They also sell similar gold-plated watches for $3,000 and stainless steel watches for around $500-$1,000. I'm sure Angela Ahrendts knows the mix, and could have guided Apple as to how many they might realistically sell relative to the other models.

Also, given that the dedicated Apple Watch stores are outside the US, we need to consider the possibility that foreign markets will be more important. London, Paris, and Tokyo (particularly London) have lots of very wealthy people, including lots of foreign money.

 

[Arran]

Apple is attempting to attract luxury watch buyers...

You make some good points.

I'm still not convinced Apple expect to sell any of their $17K watches - I suppose if they do sell one or two then it's basically "found money". May as well take it!

I'm thinking the price point is certainly there to attract. Or to put it bluntly, to make Apple's name pop up in conversations when a customer says they want to spend 10K on a watch. Of course, mentioning Apple Edition in that context will likely lead to polite smiles (or grimaces ) all round, but it will start get the name mentioned to people who might be looking for a nice $1k watch next time?

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Burberry sells 18kt gold watches for $15,000 with leather bands.

No. Burberry offers $15K watches for sale. They may not sell any. It may not even be their intention to sell any at that price point. I had a quick look at Burberry.com and saw a similar pattern: Several cheaper watches (under 1K), a few around 1-3K, a huge gap (hmmm) and then this $14-$15K gold anomaly (double-hmmm).

I'll bet Burberry don't sell any at all. You'd have to be crazy to buy one. They're nothing special - and everyone knows it.

 

[ninethirty]

The problem with the people on this forum is that they have a complete misunderstanding and disregard for people with money. They falsely assume that these people WILL and do spend money on anything and everything that's expensive because that's like them spending $20 on something - no big deal! They refuse to acknowledge that these people know that for the same prices, they can buy actual quality timepieces from the likes of Rolex, Patek Philippe, Panera, AP, etc. Everyone I know who has the money to blow on Apple Watch Edition has either A. Not mentioned them at all (ie: not on their radar) or B. laughed at it.

You make some good points.

I'm still not convinced Apple expect to sell any of their $17K watches - I suppose if they do sell one or two then it's basically "found money". May as well take it!

I'm thinking the price point is certainly there to attract. Or to put it bluntly, to make Apple's name pop up in conversations when a customer says they want to spend 10K on a watch. Of course, mentioning Apple Edition in that context will likely lead to polite smiles (or grimaces ) all round, but it will start get the name mentioned to people who might be looking for a nice $1k watch next time?

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No. Burberry offers $15K watches for sale. They may not sell any. It may not even be their intention to sell any at that price point. I had a quick look at Burberry.com and saw a similar pattern: Several cheaper watches (under 1K), a few around 1-3K, a huge gap (hmmm) and then this $14-$15K gold anomaly (double-hmmm).

I'll bet Burberry don't sell any at all. You'd have to be crazy to buy one. They're nothing special - and everyone knows it.

 

[bunnicula]

The problem with the people on this forum is that they have a complete misunderstanding and disregard for people with money. They falsely assume that these people WILL and do spend money on anything and everything that's expensive because that's like them spending $20 on something - no big deal! They refuse to acknowledge that these people know that for the same prices, they can buy actual quality timepieces from the likes of Rolex, Patek Philippe, Panera, AP, etc. Everyone I know who has the money to blow on Apple Watch Edition has either A. Not mentioned them at all (ie: not on their radar) or B. laughed at it.

Part of having a lot of money is that, while you may to be using it to light cigars or anything, you CAN buy pretty much any retail item that appeals to you.

People will buy the Edition. Not in remotely the same numbers as Watch and Sport. But, it'll sell.

 

[ninethirty]

Sure. What I'm suggesting is that it isn't going to appeal to people.

Part of having a lot of money is that, while you may to be using it to light cigars or anything, you CAN buy pretty much any retail item that appeals to you.

People will buy the Edition. Not in remotely the same numbers as Watch and Sport. But, it'll sell.

 

[Rogifan]

This reminds me of the "nobody I knew voted for Nixon" comment. It may turn out Apple completely got this one wrong but I'm willing to give Paul Deneve, Angela Ahrendts, among others the benefit of the doubt.

 

[NewbieCanada]

To ask a similar question another way, would you ask a plumber about brain surgery?

Better a plumber than Ben Carson.

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I mean, would you ask the average Apple store employee what sort of haircut suits you? This is similar - but at least a bad haircut will grow out.

If Apple were the only supplier of haircuts and there were only three main cuts with a couple of dozen colours available - yes, sure I'd ask them for advice if I wasn't sure.

People are blowing this way out of proportion, to the point of utter stupidity. Par for the course with everything Apple does.

 

[whtrbt7]

The product may not actually be snobbish but some people that purchase the product may be snobs. Apple is seen as a brand and people that associate with that brand may or may not attribute superiority with owning the product.

 

[KPOM]

Look at my earlier remarks about Burberry watches. I've lived in London, and spent plenty of time in Europe, especially Paris. The Edition is going to be a flop.

I'm sure Angela Ahrendts knows exactly how many $15,000 watches they sold during her tenure and can guide Apple's expectations. I doubt it costs all that much for Apple to make a small percentage of gold watches. It sounds like it was more of a pride thing for Jony Ive.

Anyway, I think China will wind up being the biggest market for the Edition. It's no accident that the priciest model includes the yellow gold with red leather band. Some ordinary Western brands are viewed in high regard in China (Hilton Hotels, for example).

 

[ninethirty]

Remember, Ive pushed for the Edition, not her. And look at how much she's making at Apple - I doubt she gives a **** how it performs.

I'm sure Angela Ahrendts knows exactly how many $15,000 watches they sold during her tenure and can guide Apple's expectations. I doubt it costs all that much for Apple to make a small percentage of gold watches. It sounds like it was more of a pride thing for Jony Ive.

Anyway, I think China will wind up being the biggest market for the Edition. It's no accident that the priciest model includes the yellow gold with red leather band. Some ordinary Western brands are viewed in high regard in China (Hilton Hotels, for example).

 

[KPOM]

Remember, Ive pushed for the Edition, not her. And look at how much she's making at Apple - I doubt she gives a **** how it performs.

The $75 million is inflated because half of it is to compensate her for a Burberry award that she walked away from. The other half is earned over time. Ive doesn't control Apple. Ultimate Tim Cook had to agree, and I'm sure he consulted with his entire executive team, including the head of retail, particularly since they are making significant changes to their retail strategy in light of the rollout. I'm sure she very much cares how the Watch line as a whole does (since it's a reflection of the retail store), and if she thought that offering the Edition would threaten sales of the overall Watch line she'd have no problems telling that to Tim Cook.

 

[kingofwale]

This reminds me of the "nobody I knew voted for Nixon" comment. It may turn out Apple completely got this one wrong but I'm willing to give Paul Deneve, Angela Ahrendts, among others the benefit of the doubt.

yep, because Burberry is known for their amazing 15K gold watches.

 

[Rogifan]

Remember, Ive pushed for the Edition, not her. And look at how much she's making at Apple - I doubt she gives a **** how it performs.

Says who? The New Yorker never said which Apple executives had reservations about it. At the end of the day Tim Cook is CEO. He has the final say not Jony Ive.

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yep, because Burberry is known for their amazing 15K gold watches.

As are posters on MR.

 

[bunnicula]

Sure. What I'm suggesting is that it isn't going to appeal to people.

You don't know many Chinese people who were born in China, do you?

It will most definitely appeal to middle class and higher Chinese (and Taiwanese, Japanese, Korean) customers enough to sell. It might as well say "Buy me for I am the ultimate symbol of wealth and prosperity."

Look at the locations for the Apple Watch specialty shops. They are not coincidental locations. https://www.macrumors.com/2015/03/10/high-end-retail-shops-showcasing-apple-watch/

Look at how many places in China are carrying this watch. It will sell.

You also have these heavy in Europe in locations where wealthy Saudis vacation. These locations are strategically located.

 

[ninethirty]

You, like other people on this forum, have very misguided ideas about who spends money and why. The harsh reality is that nobody cares about the Apple Watch. And amongst those who know it exists, a tiny fraction are aware the Apple Watch Edition exists, and amongst those, the tiniest fraction imaginable give a **** about it. China, or wealthy Saudi's included. If you want to imagine that 17k is nothing to these people, then they'll be spending "nothing" on things that they actually care about, and the Apple Watch isn't it. If this is going to hurt your feelings, you'd better start dealing with it now.

You don't know many Chinese people who were born in China, do you?

It will most definitely appeal to middle class and higher Chinese (and Taiwanese, Japanese, Korean) customers enough to sell. It might as well say "Buy me for I am the ultimate symbol of wealth and prosperity."

Look at the locations for the Apple Watch specialty shops. They are not coincidental locations. https://www.macrumors.com/2015/03/10/high-end-retail-shops-showcasing-apple-watch/

Look at how many places in China are carrying this watch. It will sell.

You also have these heavy in Europe in locations where wealthy Saudis vacation. These locations are strategically located.

 

[bunnicula]

You, like other people on this forum, have very misguided ideas about who spends money and why. The harsh reality is that nobody cares about the Apple Watch. And amongst those who know it exists, a tiny fraction are aware the Apple Watch Edition exists, and amongst those, the tiniest fraction imaginable give a **** about it. China, or wealthy Saudi's included. If you want to imagine that 17k is nothing to these people, then they'll be spending "nothing" on things that they actually care about, and the Apple Watch isn't it. If this is going to hurt your feelings, you'd better start dealing with it now.

Hurt feelings? I have no clue what you mean. And I absolutely do know wealthy humans in the above categories who would buy the Edition. And some who would not.

Just like every other product in history.

 

[jwball]

I take it you've never worked retail.

I think the reason the conversation turned to size and fit is because retail associates don't dispense much fashion advice (if any at all). Their primary function is to answer questions.

Again, it sounds as if you've never worked retail.

I've owned a retail business for the last 14 years, so I'd say I've worked "in" retail.

In our industry shop displays are dressed by display people who know fashion and can show what products go well with one another. This is something that cannot be done in an Apple store unless they move into clothing lines.

Hence my reply to the original post question "would you take fashion advice from an Apple Store employee?"

 

[Appl3FTW]

hater's gonna hate... BYE FELICIA!

 

[rjlawrencejr]

I've owned a retail business for the last 14 years, so I'd say I've worked "in" retail.

In our industry shop displays are dressed by display people who know fashion and can show what products go well with one another. This is something that cannot be done in an Apple store unless they move into clothing lines.

Hence my reply to the original post question "would you take fashion advice from an Apple Store employee?"

If you've owned a retail business then you should the answer. Honestly, why are you even asking the question in the first place. Your 14 years of experience should be a strong enough yardstick.

 

[Lucifer666]

When you live in a trailer park you tend to think just about everyone not living in
a trailer park is a snob.

It's like a fallback option. Works great