how is apple going to profit from the watch

Discussion in 'Apple Watch' started by Appl3FTW, Mar 30, 2015.

  1. Appl3FTW macrumors 601

    Appl3FTW

    Joined:
    Nov 15, 2012
    #1
    the more I see the more I get the angle apple is aiming with the sale of the apple watch. they want people to use it as a customizable fashion device... they want people to buy bands to change around and use as a fashion piece. hopefully the upgrades are incremental OS without the need to replace the actual hardware case. at least not until 2-3 yrs of life until redesign.

    btw: what's the official OS is the apple watch running? applewatch OS?
     
  2. JuryDuty macrumors 6502

    JuryDuty

    Joined:
    Sep 22, 2014
    Location:
    Texas
    #2
    They'll profit from the way they profit from the other Mac items: By getting you further entrenched into their ecosystem to buy iCloud, music, apps, etc. The watch is just another gateway drug.
     
  3. Appl3FTW thread starter macrumors 601

    Appl3FTW

    Joined:
    Nov 15, 2012
    #3
    True, but this one is especial because its highly customizable.
     
  4. Technodynamic macrumors 6502

    Technodynamic

    Joined:
    Jul 25, 2012
    #4
    heavy profit on the hardware is #1.

    sales of additional bands.

    new app store and apps for watch expand their software sales.

    Watch locks in users into iPhone ecosystem

    paves the way to future products that are function as well as status.

    WHAT IF they actually sell a fair amount of Apple Watch Editions? They are marked up 10 times the actual cost.
     
  5. JuryDuty macrumors 6502

    JuryDuty

    Joined:
    Sep 22, 2014
    Location:
    Texas
    #5
    Exactly. That just makes the drug all that more potent! :p
     
  6. Appl3FTW thread starter macrumors 601

    Appl3FTW

    Joined:
    Nov 15, 2012
  7. KauaiBruce macrumors 6502a

    KauaiBruce

    Joined:
    Jul 5, 2007
    Location:
    Kauai, HI
  8. JayLenochiniMac macrumors G5

    Joined:
    Nov 7, 2007
    Location:
    New Sanfrakota
    #8
    Watch OS.
     
  9. kmj2318 macrumors 68000

    kmj2318

    Joined:
    Aug 22, 2007
    Location:
    Naples, FL
    #9
    I think this belief is overstated. Most people who buy the Watch will be fine with the band they get, and relatively few will buy multiple bands. If you compare it to iPhone cases, the phone doesn't even come with a case, and most people buy one. The watch already comes with a band. Because the watch has more of a fashion aspect than the phone, some people will buy extra bands. But overall, I think there will be relatively fewer bands sold proportionally than phone cases. Yet the bands will have higher profit. I think the bands will be more profitable than phone cases, but not enough to say it's a significant part of the profit. That would be in the watch itself.
     
  10. PeterRollback macrumors regular

    Joined:
    Mar 3, 2015
    Location:
    Miami
    #10
    Yes it is called Watch OS
     
  11. kdarling macrumors demi-god

    kdarling

    Joined:
    Jun 9, 2007
    Location:
    Cabin by a lake
    #11
    Well, at this point, it's a more customizable than usual for an Apple product, but IMO it's not "highly" customizable yet.

    HIGHLY customizable will come with third party watchfaces, and adapters to allow virtually any watchband on the planet.
     
  12. Lucifer666, Mar 30, 2015
    Last edited: Mar 30, 2015
  13. Appl3FTW thread starter macrumors 601

    Appl3FTW

    Joined:
    Nov 15, 2012
  14. Lucifer666 macrumors 6502a

    Joined:
    Sep 20, 2014
    #14
    Sorry if I was a bit sarcastic. :eek:

    But you don't really believe they would let you swap out the innards?

    But then again that would make sense with the gold. As a matter of fact, that's the only thing that makes sense.

    And your right about the fashion angle. I didn't even think of that. It's a rather strange thing.

    Anyway, I'm not sure how "profit" part in thread topic adds up (so to speak)
     
  15. Arran macrumors 68040

    Arran

    Joined:
    Mar 7, 2008
    Location:
    Atlanta, USA
    #15
    Margins on the $500 stainless steel bracelet will be colossal:eek:. A similar high quality, concealed clasp, SS bracelet for a Braun BN10 watch costs $130 for regular stainless and $160 for black coated.

    Pricing here: http://www.braun-clocks.com/accessories/BN0106Bracelet
     

    Attached Files:

  16. Appl3FTW thread starter macrumors 601

    Appl3FTW

    Joined:
    Nov 15, 2012
    #16
    449 for a link band is insane. That's More than the sport
     
  17. MeFromHere macrumors 6502

    Joined:
    Oct 11, 2012
    #17
    What makes you say the Braun bands are "similar high quality" compared to the Apple bands? I'd be interested in seeing that statement backed up with evidence. There's no evidence at the link you provided.

    The only specific detail mentioned -- black PVD plating -- speaks poorly of the Braun band. Apple's black link bracelet uses DLC.
     
  18. DreamPod macrumors 65816

    DreamPod

    Joined:
    Mar 15, 2008
    #18
    Apple is selling a watch for $17,000, and you wonder how they are going to profit? :p
     
  19. Cashmonee macrumors 6502a

    Cashmonee

    Joined:
    May 27, 2006
    #19
    While it is true that if a company is not using DLC, they usually will just quote PVD, they refer to different things. PVD is the process and DLC is the material. However, as I understand it, DLC material can be applied using the PVD process.

    Apple's will profit from very healthy margins on both the watches, especially the stainless steel and Edition, and the bands. They are charging $49 for a .10 rubber band, and the stainless costs $150 more for very little extra cost in materials. They don't need to sell many at those margins to make a ton of money.
     
  20. Newtons Apple macrumors G5

    Newtons Apple

    Joined:
    Mar 12, 2014
    Location:
    Jacksonville, Florida
    #20
    I would think the watch itself is the bread and butter. The rest is just gravey. The band sales will settle down and there will be some quality 3rd party bands soon.
     
  21. Trent0341, Apr 6, 2015
    Last edited: Apr 6, 2015

    Trent0341 macrumors 6502

    Joined:
    Jun 3, 2007
    #21

    Similar high quality? Highly doubtful although Braun supplies far to little information to really discuss this (less information is not usually indicative of a higher quality in my experience)... just the way apple has devised to remove/add links is way better for the end user and would certainly add to the production cost.

    That being said I think we agree on the fact that apple will make a healthy profit from the sale of bands (including the stainless steel).

    Edited to add: The more I look at the two bands the more I realize they really aren't even close in quality/design.
     
  22. Arran macrumors 68040

    Arran

    Joined:
    Mar 7, 2008
    Location:
    Atlanta, USA
    #22
    It's Braun, duh!

    They don't put their name on junk. Not in my experience, anyway.

    Even Ive respects Braun. There's much mutual respect between Rams and Ive. Admittedly Rams didn't design the Braun watch mentioned above, but it comes from the same stable. It's a Braun product.

    Here's what Ive has to say about Rams and Braun:

    Thats a pretty nice compliment and IMHO, well deserved.

    More info: http://www.telegraph.co.uk/technolo...Apple-has-achieved-something-I-never-did.html
     
  23. TRC-WA macrumors regular

    Joined:
    Sep 26, 2014
    #23
    I saw the pricing today for the first time.

    I was honestly expecting a $349-$399 ballpark price range...

    I don't even wear a watch and I just can't see dropping $600 on one. The one reason I'd even consider it would be if I can use it to replace my Fitbit.

    What's the markup on these watches? More than the iPhones would be my guess.
     
  24. technosix macrumors 6502a

    Joined:
    Jan 13, 2015
    Location:
    West Coast USA
    #24
    Apple profits handsomely from every little thing they sell, make no mistake about it. They didn't end up with the massive cash reserves they have now without charging a fat margin.

    The question isn't how will they profit, but how masterfully they'll manipulate the cash management to avoid the taxes as they're so typically accustomed to doing.

    Apple's brand strength is at an all time high and only increasing. The Watch will simply ad a few more layers of icing on the cake.
     
  25. Piggie macrumors 604

    Piggie

    Joined:
    Feb 23, 2010
    #25
    Really?

    You can select from 3 iPhone colours Silver, White, Gold
    You can pick ANYTHING to have on your iPhone screen, not just a small selection controlled by Apple.
    You can select from a VAST amount of cases, in colours, designs, and styles from Apple and other 3rd party makers.
    You can even buy iPhones in a range of colours (the plastic one)

    The watch is far less customisable
     

Share This Page