IF Apple Watch upgradeable how will Apple implement?

[Ries]

Perhaps it wasn't announced because even Apple hasn't decided what to do. But if they do decide to have AW be upgradeable, what's your guess on how they would go about it?





----------

If it's as easy as a battery replacement, then you predict upgrading would mean simply bringing your AW to the Apple Store?

The iPhone battery can be exchanged too. Can the iPhone be upgraded? no. Will the watch be upgradable? no. They want to make money, they want to sell you the device over and over again.

 

[JayLenochiniMac]

It's generally a bad strategy to promote a product by talking about the next version. Additionally Apple may not be ready to announce it, since they haven't worked out every detail yet. Also, ultimately one would save money buying the second generation rather than buying the first and then upgrading it. It doesn't do Apple any favors to tell the consumer that.

It's an even worse strategy to tell customers after the fact, when they find out they could have easily paid $200 more for an upgradable one.

 

[cmChimera]

It's an even worse strategy to tell customers after the fact, when they find out they could have easily paid $200 more for an upgradable one.

Well then they could make the sport upgradable as well, just price it in a way where it evens out.

Keep in mind that I imagine these upgrades would be expensive. As in, if you were a sport owner, it would make more sense to buy a new watch than to upgrade.

 

[pcmofo]

I believe that Apple will simply offer a trade in program like they do for iPhones now. Have a stuck button on your iPhone? Bring just the phone in, you keep the charger and other accessories, they hand you a "new" phone, which is basically a new case/battery and used PCB.

I see two possibilities for the next Apple watch,

1. The watch is physically identical
2. The watch is physically different (smaller/thinner)

In the second case, if the watch is different a trade in program makes sense, you keep your bands, they take your old watch and referb it.

In the case that it is identical, they could have a machine in the back that pops out the guts and pops in new guts, but it would be far easier for them to follow the iPhone referb model of giving you a new one and taking your old one.

In an ideal world apple would offer a $79 upgrade option to all tiers to exchange your current watch for an identical one of the new model.

In all honestly though I believe it is highly unlikely for their to be any kind of exchange program other than maybe credit towards a brand new watch. The watch is way to personal and customizable, people would come in with an aluminum watch and want a new SS watch etc.

 

[chris975d]

Will it be "upgradeable"? Yes...kind of. Apple is just going to tell you to buy the new version.

Seriously...Apple is in the business of selling disposable tech products. That's what they do, and do it better than anyone. You only have to look at how their computers and laptops have increasingly become LESS end-user upgradeable over the years to know this. Apple doesn't want you upgrading their phones, iPods, computers. Why would they suddenly change this for a relatively inexpensive watch??

 

[Cashmonee]

Problem number one with the upgrade idea is the day they would have to say a version is no longer upgradeable. There would have to come a time when they would not be able to offer upgrades, and the uproar would be huge. Why tie your hands like that? Why force yourself into designs and ideas that would have to fit into a model that is years old? That would be insane for a tech company!

 

[JayLenochiniMac]

Problem number one with the upgrade idea is the day they would have to say a version is no longer upgradeable. There would have to come a time when they would not be able to offer upgrades, and the uproar would be huge. Why tie your hands like that? Why force yourself into designs and ideas that would have to fit into a model that is years old? That would be insane for a tech company!

But isn't Apple quite used to pissing people off by making many of their products less and less upgradable? Ditching user-upgradable RAMs in the new Mac Mini, making their latest MacBook Pro pretty much user unservicable and the like?

 

[Mr.C]

I'm in the " none of the models will be upgradeable" camp. There is no reason for them to provide a hardware upgrade program even for the Edition model. Not to mention I very much doubt any kind of upgrade program would be impractical and there is no easy way to implement such a thing.

 

[Cashmonee]

But isn't Apple quite used to pissing people off by making many of their products less and less upgradable? Ditching user-upgradable RAMs in the new Mac Mini, making their latest MacBook Pro pretty much user unservicable and the like?

The difference is that you know that going into the purchase. If they start upgrade programs, people will buy with the expectation of being able to upgrade in the future. If you all of the sudden can't deliver on that promise, things get ugly. For example, you buy your gen 1 Watch with the idea it will be upgradeable, but when gen 4 rolls around, Apple can't upgrade the gen 1-3 anymore due to feature x that doesn't fit or requires connector z that wasn't around when gen 1-3 was built. Do you see the difference?

 

[JayLenochiniMac]

The difference is that you know that going into the purchase. If they start upgrade programs, people will buy with the expectation of being able to upgrade in the future. If you all of the sudden can't deliver on that promise, things get ugly. For example, you buy your gen 1 Watch with the idea it will be upgradeable, but when gen 4 rolls around, Apple can't upgrade the gen 1-3 anymore due to feature x that doesn't fit or requires connector z that wasn't around when gen 1-3 was built. Do you see the difference?

Then they can vote with their wallet once Apple announces that the new Apple Watch is no longer upgradable. That's the same as knowing going into the purchase, really no different from the aforementioned examples.

It's not like any "upgradable" Watch they may sell would be upgradable forever, just as any iDevice you buy today would no longer be supported (software or hardware) after a certain period of time.

 

[Cashmonee]

Then they can vote with their wallet once Apple announces that the new Apple Watch is no longer upgradable. That's the same as knowing going into the purchase, really no different from the aforementioned examples.

It's not like any "upgradable" Watch they may sell would be upgradable forever, just as any iDevice you buy today would no longer be supported (software or hardware) after a certain period of time.

All the more reason why I just don't see it happening. Especially since they have not announced it. It is dangerous territory that ties their hands in future development, and honestly would probably be more trouble than it is worth.

Who knows though? The entire watch deal has been a bit of an enigma to me from the start. The only one that really makes any sense at all is the Sport. The others just seem out of place and hard for me to figure out or understand. So, I could be way off and they will upgrade the internals and turn into the next great luxury watch maker while still being a mass producing/mass market consumer electronics maker.

 

[MisterMe]

Will it be "upgradeable"? Yes...kind of. Apple is just going to tell you to buy the new version.

Seriously...Apple is in the business of selling disposable tech products. That's what they do, and do it better than anyone. You only have to look at how their computers and laptops have increasingly become LESS end-user upgradeable over the years to know this. Apple doesn't want you upgrading their phones, iPods, computers. Why would they suddenly change this for a relatively inexpensive watch??

The gold case of the Edition will never be obsolete. It is current worth about $2700 on today's precious metals market. Only the internals of any Watch will be obsolete. I estimate that they cost Apple about $50--perhaps much less. It makes absolutely no sense for Apple to require the owner of a $17,000 device--the most expensive device that it has ever offered to the public--to dispose of it to upgrade a $50 component.

 

[chris975d]

The gold case of the Edition will never be obsolete. It is current worth about $2700 on today's precious metals market. Only the internals of any Watch will be obsolete. I estimate that they cost Apple about $50--perhaps much less. It makes absolutely no sense for Apple to require the owner of a $17,000 device--the most expensive device that it has ever offered to the public--to dispose of it to upgrade a $50 component.

Let's just wait and see then. That's all that can be done at this point.

 

[technosix]

Apple has worked diligently for years to occupy the position they're in today. At this point they have the power to do as they please and rightfully so.

When you're ready to upgrade your watch you simply buy the newest model.

Remember Apple is in the fashion business now, think fashion not tech and you'll have no problem.

 

[technosix]

The gold case of the Edition will never be obsolete. It is current worth about $2700 on today's precious metals market. Only the internals of any Watch will be obsolete. I estimate that they cost Apple about $50--perhaps much less. It makes absolutely no sense for Apple to require the owner of a $17,000 device--the most expensive device that it has ever offered to the public--to dispose of it to upgrade a $50 component.

Respectfully you're way off base. While I appreciate the logic you've applied it's irrelevant. Apple doesn't care what it costs the customer, this is the benefit of Apples entry into the fashion industry.

If you believe the Gold is worth that much in the form of a used Apple Watch, that too is wrong. Very wrong.

Those who buy Apple Edition watches can easily afford a dozen of them without hesitation. In my rather modest collection of luxury hand made Swiss Chronographs a single watch is a six digit outlay of cash.

Thus relative to real luxury watches, the Apple Edition is a pittance.

 

[MisterMe]

Apple has worked diligently for years to occupy the position they're in today. At this point they have the power to do as they please and rightfully so.

When you're ready to upgrade your watch you simply buy the newest model.

What you are describing is an incredibly stupid business model. If Apple really did business this way, then it would quickly fall from the richest corporation ever into bankruptcy.

Remember Apple is in the fashion business now, think fashion not tech and you'll have no problem.

You may convince yourself that Apple is now in the business of selling decoration. Somehow, I think that you overlooked the fact that Apple does not sell cuff links and tie clasps. It does not sell necklaces, ear rings, and wedding bands.

It sells [will sell, actually] smart watches. The things that makes a watch jewelry are the precious metals and jewels used to manufacture them. There are no jewels in any model Watch. The most popular model of the device is expected to be the Sport, which is constructed of aluminum. Aluminum is not a precious metal.

The Watch is a tech device. The thing that separates this tech device from Apple's other tech device is that it will sell at margins higher than any of Apple's other tech devices. I estimate the Sport to have a margin of at least 100%. The SS models are also manufactured using non-precious metals. They are tech devices that will sell at substantially higher margins than the Sport.

The Edition has a gold case which qualifies it as jewelry. With a retail price as high as $17,000, it is the most expensive consumer device in Apple's history. Depending on the model, the Edition's unit profit margin is $9,000-$12,000 (300%-400%).

It was stated in an earlier post that Apple will not sacrifice iPhone sales with Watch sales. This is laughable. The iPhone sells on very slim margins with most sales subsidized by a cellular provider. Every model of the Watch is a license to mint money and will have no subsidy.

So, keep telling yourself that Apple has abandoned tech for the fashion business.

 

[cmChimera]

Apple has worked diligently for years to occupy the position they're in today. At this point they have the power to do as they please and rightfully so.

When you're ready to upgrade your watch you simply buy the newest model. You may convince yourself that Apple is now in the business of selling decoration. Somehow, I think that you overlooked the fact that Apple does not sell cuff links and tie clasps. It does not sell necklaces, ear rings, and wedding bands.

It sells [will sell, actually] smart watches. The things that makes a watch jewelry are the precious metals and jewels used to manufacture them. There are no jewels in any model Watch. The most popular model of the device is expected to be the Sport, which is constructed of aluminum. Aluminum is not a precious metal.

The Watch is a tech device. The thing that separates this tech device from Apple's other tech device is that it will sell at margins higher than any of Apple's other tech devices. I estimate the Sport to have a margin of at least 100%. The SS models are also manufactured using non-precious metals. They are tech devices that will sell at substantially higher margins than the Sport.

The Edition has a gold case which qualifies it as jewelry. With a retail price as high as $17,000, it is the most expensive consumer device in Apple's history. Depending on the model, the Edition's unit profit margin is $9,000-$12,000 (300%-400%).

It was stated in an earlier post that Apple will not sacrifice iPhone sales with Watch sales. This is laughable. The iPhone sells on very slim margins with most sales subsidized by a cellular provider. Every model of the Watch is a license to mint money and will have no subsidy.

So, keep telling yourself that Apple has abandoned tech for the fashion business.

I just wanted to say that the iPhone is actually sold with very high margins. It costs them about 200 bucks to manufacture and they sell it starting at $650.

 

[KenAFSPC]

I just wanted to say that the iPhone is actually sold with very high margins. It costs them about 200 bucks to manufacture and they sell it starting at $650.

The iPhone 6 costs between $200 and $250 to build. The cost includes many components from other suppliers.

The Apple Watch face (steel and aluminum) will likely cost less than $50 to build. The Apple Watch uses very few components from other suppliers.

Of course, Apple does have extensive R&D costs to recoup.

 

[technosix]

Somehow, I think that you overlooked the fact that Apple does not sell cuff links and tie clasps. It does not sell necklaces, ear rings, and wedding bands.

So, keep telling yourself that Apple has abandoned tech for the fashion business.

Is time to accept Apple's very clever migration into the highly profitable world of luxury goods. We've only begun to see what Apple's capable of.

Your assumption they're abandoning tech is proof positive of the way it's shaking up those who insist on assuming they know Apple. Just when you least expect it Apple's highly likely to introduce another piece of jewelry, so brace yourself...

 

[MisterMe]

The iPhone 6 costs between $200 and $250 to build. The cost includes many components from other suppliers.

The Apple Watch face (steel and aluminum) will likely cost less than $50 to build. The Apple Watch uses very few components from other suppliers.

Of course, Apple does have extensive R&D costs to recoup.

Although you don't define your phrase "cost to build," I accept your post as a clarification. Although your clarification differs in absolute terms from my cost estimates, we largely agree on the big picture. The big picture is that the Watch Edition and SS models will sell at insane margins. If your numbers are correct, then even the "loss-leader" Sport will sell at margins of 600% or profits of $300 per unit.