how is apple going to profit from the watch

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

  1. Appl3FTW macrumors 603


    Nov 15, 2012
    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


    Sep 22, 2014
    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 603


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


    Jul 25, 2012
    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


    Sep 22, 2014
    Exactly. That just makes the drug all that more potent! :p
  6. Appl3FTW thread starter macrumors 603


    Nov 15, 2012
  7. KauaiBruce macrumors 6502a


    Jul 5, 2007
    Kauai, HI
  8. JayLenochiniMac macrumors G5

    Nov 7, 2007
    New Sanfrakota
    Watch OS.
  9. kmj2318 macrumors 68000


    Aug 22, 2007
    Naples, FL
    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

    Mar 3, 2015
    Yes it is called Watch OS
  11. kdarling macrumors demi-god


    Jun 9, 2007
    First university coding class = 47 years ago
    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 603


    Nov 15, 2012
  14. Lucifer666 macrumors 6502a

    Sep 20, 2014
    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 601


    Mar 7, 2008
    Atlanta, USA
    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:

    Attached Files:

  16. Appl3FTW thread starter macrumors 603


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

    Oct 11, 2012
    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


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


    May 27, 2006
    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 Suspended

    Newtons Apple

    Mar 12, 2014
    Jacksonville, Florida
    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

    Jun 3, 2007

    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 601


    Mar 7, 2008
    Atlanta, USA
    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:
  23. TRC-WA macrumors regular

    Sep 26, 2014
    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

    Jan 13, 2015
    West Coast USA
    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 G3


    Feb 23, 2010

    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

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