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Huge applause when gold watch is announced at $2500

B

betabeta

macrumors 6502a
Original poster
Jun 28, 2013
921
212
With all the talk of it costing $10,000 (most likely pushed by apple pr) imagine the cheers at the event when it's announced at $2500 people will think it's a bargain:D

Apple could sell a bunch at $10,000 but why? It will still be exclusive at $2500 and at $2500 they will sell an amazing amount of them.

We don't even know how much gold, maybe less than an ounce, so what if it's just $900 in gold, they could sell it for $1999 and make a nice markup at that.

I think they want to sell a lot of the gold versions. Honestly I would not be surprised with a $1999 price, I will be shocked with anything over $4000.

We shall see soon.:)
 
cleirac said:
It will be $4.5k per FT, do not forget to take your meds on Monday. :D
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4k is certainly in the ballpark;) anything under 5k is a good bet, I still think they will go for a slightly wider audience under 3k.
 
The rumour that the Edition constitutes one sixth of the initial production run does suggest the price will be far below $10k.
 
If it's $2,500 I'll be elated until I realize that the initial run might actually sell out quickly. I want my Rose Gold Edition! :D
 
I would love that to happen, but I just can't see Apple selling the edition watch for a smaller percentage markup than they sell the iPhone. So would be very surprised if it is less than $3000.
 
ditzy said:
I would love that to happen, but I just can't see Apple selling the edition watch for a smaller percentage markup than they sell the iPhone. So would be very surprised if it is less than $3000.
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I'm not sure where I land on this, but it isn't all about percentages. 20% on a $2,500 purchase is way more then 30% on a $800 purchase. Apple has never really attacked on price to gain volume, but they have surely done research to know where the proper level of balance is. The pricing is actually one of the most exciting things for me about this. Not just to see how much cash I am going to be shelling out, but just to get an idea of what their thinking is on this thing, especially the Edition.
 
It seems to me Apple thinks it's going to sell a million of these gold watches.

Now there is no way they are selling that many for $10,000.

Funny we hear $10,000 thrown around, I would have never came up with this number, most would be thinking 4k tops.

So you push this $10,000 number, so e think $5,000, then you announce $2500/3000 and the press and internet blow up on how reasonable it really is.

That perspective would have not happened, people would have seen $2500 and thought it was nuts.

Now when they announce $2500, many crazy people like myself will consider buying it:D

How do you make $2500 seem reasonable, and have the press write articles about how great of deal the gold watch is..... tell people it will cost $10,000 for half a year.:apple: illusion;)
 
JayLenochiniMac said:
It doesn't matter whether it's 2.5, 5 or 10K. It'll still be the biggest sh**-fit, especially on this forum.
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Per his Twitter feed, John Gruber doesn't think that the use of the new formulation will make the Edition any cheaper.
 
I don't really care what price it is.

I will be pleased in general if the price is lower, so that more "normal" people will have more chance of affording the model that would love to own.

What I WILL be interested in, if it's very expensive, and by that I mean way WAY over the actual value of the product, and by that I mean the gold value, as to how the media reacts and how Apple justifies it.

It's ok, selling something for $500 when it costs you $200 to make.
Or selling a SDD for $300 when others charge $200

It's another thing to charge $5000 for something that costs you say $1300
Unless there is something else that goes along with the deal, as some have suggested some upgrade special offer deal.
 
Piggie said:
I don't really care what price it is.

I will be pleased in general if the price is lower, so that more "normal" people will have more chance of affording the model that would love to own.

What I WILL be interested in, if it's very expensive, and by that I mean way WAY over the actual value of the product, and by that I mean the gold value, as to how the media reacts and how Apple justifies it.

It's ok, selling something for $500 when it costs you $200 to make.
Or selling a SDD for $300 when others charge $200

It's another thing to charge $5000 for something that costs you say $1300
Unless there is something else that goes along with the deal, as some have suggested some upgrade special offer deal.
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That's how jewelry is priced, however. It isn't based on cost. The question is whether people will see the Edition as jewelry with technology inside, or a tech item with a bejeweled outside.
 
KPOM said:
That's how jewelry is priced, however. It isn't based on cost. The question is whether people will see the Edition as jewelry with technology inside, or a tech item with a bejeweled outside.
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Indeed, and Apple does not make Jewellery, it does not have the brand name or image to do so, and it's a machine made mass produced product company.

If for example Rolex had craftsmen sitting at desks, spending a week each assembling a gold Apple/Rolex watch one at a time, then then would be one price.
If Apple are churning out 1000 to 10,000 a week in a Chinese production line (not just the gold case version) then that is perceived as being totally different.

Just changing the type of metal, only on the outside case, does not turn a $349 computer into $5000+ jewellery.
 
betabeta said:
With all the talk of it costing $10,000 (most likely pushed by apple pr) imagine the cheers at the event when it's announced at $2500 people will think it's a bargain:D

Apple could sell a bunch at $10,000 but why? It will still be exclusive at $2500 and at $2500 they will sell an amazing amount of them.

We don't even know how much gold, maybe less than an ounce, so what if it's just $900 in gold, they could sell it for $1999 and make a nice markup at that.

I think they want to sell a lot of the gold versions. Honestly I would not be surprised with a $1999 price, I will be shocked with anything over $4000.

We shall see soon.:)
Click to expand...

I don't think the Edition price will draw cheers unless it under $1000. $2500 doesn't seem cheer-inducing. That is a chunk of change for a completely unproven device in an unproven market. A market, by the way, in which most of the competitors are priced under $250.
 
Piggie said:
Indeed, and Apple does not make Jewellery, it does not have the brand name or image to do so, and it's a machine made mass produced product company.
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Do you realize they're already charging a >3x markup (which is pretty standard in the jewelry industry) for the iPhone? It costs $649 to purchase a 16GB iPhone 6 outright and it has only ~$200 in component costs.

Wake me up if they charge a 5-10x markup for the Edition models.
 
JayLenochiniMac said:
Do you realize they're already charging a >3x markup (which is pretty standard in the jewelry industry) for the iPhone? It costs $649 to purchase a 16GB iPhone 6 outright and it has only ~$200 in component costs.

Wake me up if they charge a 5-10x markup for the Edition models.
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Yes, but I do not see a linear scale being needed here.

If I make something for, as you say $200 and I sell for $600 there is a 3x mark-up or rather I make $400 profit.

I don't see why then I can't make something for $1000 and sell for $1400 and still make my same $400 profit.

I don't understand why you are insisting it "HAS" to always be a percentage mark up, and if I make it for $1000, it means I must sell for $3000

I don't see why that rule has to apply?

And please stop applying old school Jewellery rules to a computer manufacturer!

That would be like saying Rolex makes a computer so as it's a computer Rolex much use cut throat pricing as that's how computers are priced.
No. Rolex would charge what Rolex charge.

Apple will charge what Apple charge for hardware. Not some other industry/brand/product.
 
Piggie said:
I don't understand why you are insisting it "HAS" to always be a percentage mark up, and if I make it for $1000, it means I must sell for $3000

I don't see why that rule has to apply?
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Supposedly, one of the main drivers of Apple stock price for the past few years has been their profit margin. When it goes up, stock goes up.

Conversely, whenever that margin has dropped, investors have gotten very skittish, because it usually means competition is heating up.

For better or worse, a high margin is expected of Apple these days. Unless perhaps Cook can do a song and dance during the quarterly call after the debut.
 
Looking over the patent Apple has, there is very good chance the gold content could be even lower seeing how they can have a larger volume at the same weight. So it shouldn't be hard to keep it under an ounce ($800), that means the watch can be made for under $1000.

Yeah Apple is not a jewelry company, but they are a fashion statement, and watches are fashion so no way they would ever make a gold color watch, it had to be real gold. But they will want to sell a lot of these, the price will start at a price a lot of people can afford, $2500, but it would not shock me if the entry level edition with sports band was even lower, still hitting Apples magic 250% markup.

China loves gold, how many in China could afford $10,000? Some, how about $2500? way more than you would ever think, and in the states, the gold will likely sell out if priced right.

Apple wants lots of wealthy people to buy the Edition watch, not just ultra rich.

I already know a handful of people who will drop 2500, I know of no one who would drop over 3k.

The pricing of this line is very important, the SS line even more so, I don't think they will get it wrong;)
 
Piggie said:
Yes, but I do not see a linear scale being needed here.

If I make something for, as you say $200 and I sell for $600 there is a 3x mark-up or rather I make $400 profit.

I don't see why then I can't make something for $1000 and sell for $1400 and still make my same $400 profit.

I don't understand why you are insisting it "HAS" to always be a percentage mark up, and if I make it for $1000, it means I must sell for $3000

I don't see why that rule has to apply?
Click to expand...


Piggie, you keep pushing this rhetoric that Apple should be happy making the same (fixed) amount of profit across all watch models. What you're missing is that shareholders care about profit margins, meaning if Apple is making something for $200 and selling it for $600 (3x), when they make something for $1,000 the normal thing is that they sell it for $3,000 otherwise their average profit margin would take a hit.

Think about it this way, why would a company invest $1,000 to make one item and sell it for $1,400 when they can take that same $1,000 and make 5x$200 items and sell them for $3,000 ($600 each). It's all about the profit margin.
 
Yoonoo said:
Piggie, you keep pushing this rhetoric that Apple should be happy making the same (fixed) amount of profit across all watch models. What you're missing is that shareholders care about profit margins, meaning if Apple is making something for $200 and selling it for $600 (3x), when they make something for $1,000 the normal thing is that they sell it for $3,000 otherwise their average profit margin would take a hit.

Think about it this way, why would a company invest $1,000 to make one item and sell it for $1,400 when they can take that same $1,000 and make 5x$200 items and sell them for $3,000 ($600 each). It's all about the profit margin.
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No No.

I have never said "Apple should be happy with a fixed profit"

I just said I don't agree with people who seem to feel these is some rule set in stone by god that tells apple they MUST have a 3x mark up on every product at every price point.

Apple can do what it dam well likes, and price and profit at is see's fit.
I am just saying I don't agree with people who are saying what Apple MUST do.
 
Piggie said:
If I make something for, as you say $200 and I sell for $600 there is a 3x mark-up or rather I make $400 profit.

I don't see why then I can't make something for $1000 and sell for $1400 and still make my same $400 profit.
Click to expand...

You have to protect yourself against cases where you don't sell as much as you hoped.

If you sell something you made for $200 at $600, but you made 10 and only sold 8, well, I'm not good at math, but I believe you'll find you still made money, despite not selling everything you made.

But if you make 10 things at $1000 each, and sold them for only $1400, and you only sell 8.... Again, please do the math, but I think you come out worse off than the first case.
 
All of a sudden people think $5,000 or less for a mass produced digital watch is too affordable to be exclusive? :rolleyes:
 
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