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Price Drop a sign??

Chupa Chupa said:
BUT what I find odd is that in the same event where Apple basically waived the white flag and admitted AW was initially priced to high (previously it let retailer discount by $50 or $100) it RAISED the price of the well-known-to-be-struggling 9.7 iPad. It's like they don't really see the big picture.
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It's easier to reconcile that if you see it as an attempt to undercut their competitors, as many people would find little reason to consider the fitbit and other brands if they can get the AW for $50 more.

In any case, there's too much baseless rationalizing in this thread. People who've returned the AW (or don't wear it as much) are thinking "It must indicate poor sales!" and people who are waiting for a good time to get an AW are thinking "They must be clearing existing inventory" or "AW2 is right around the corner!"
 
Brett1203 said:
Apple does not drop prices on any product unless a new updated one comes out, so with Apple dropping the price of the watch to start at $299 makes me think sales must not be nearly as good as they try to make us believe.

The lack of any innovations or faces in the new update as well, lame. I wear my Huawai Android Wear watch more than my Apple Watch these days.
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Apple dropped the Apple TV price from $99 to $69 in their March event last year. New Apple TV wasn't released until November. I think we see the new watch debut in Sept.
 
JayLenochiniMac said:
It's easier to reconcile that if you see it as an attempt to undercut their competitors, as many people would find little reason to consider the fitbit and other brands if they can get the AW for $50 more.

In any case, there's too much baseless rationalizing in this thread. People who've returned the AW (or don't wear it as much) are thinking "It must indicate poor sales!" and people who are waiting for a good time to get an AW are thinking "They must be clearing existing inventory" or "AW2 is right around the corner!"
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Right, but if undercutting is the strategy then it's reflected in the price at launch when it has the most impact, not a year later. The only reason to lower the price a year later is because all the early adopters are out of the system and a sales revival is needed, as you say, you need to start competing with the lower priced competitors. But if that is the case then Apple has failed at its attempt to explain what AW is, and why consumers need one if its competing against a basic Fitbit. I can't recall when Apple has involved itself in a price war. It's lowered prices when a product is EOL or was overpriced at the start.
 
Chupa Chupa said:
But if that is the case then Apple has failed at its attempt to explain what AW is, and why consumers need one if its competing against a basic Fitbit. I can't recall when Apple has involved itself in a price war. It's lowered prices when a product is EOL or was overpriced at the start.
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However, no matter how good of a job Apple does, there will always be cheapos and those who simply don't care (like Android users who switched to the iPhone only when Apple released a phablet regardless of how sucky or buggy Android OS/hardware was).
 
JayLenochiniMac said:
However, no matter how good of a job Apple does, there will always be cheapos and those who simply don't care (like Android users who switched to the iPhone only when Apple released a phablet regardless of how sucky or buggy Android OS/hardware was).
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Sure, and that was Apple's rationale for not lowering the price of the iPad -- it wasn't going to compete with lesser hardware at budget prices. Which goes back to my point of Apple not really explaining why AW is better than Fitbit if it thinks it has to now compete with them. I've owned a couple Fitbits myself. Nice, but very different than AW. Honestly a $299 AW is a no-brainer but I don't think that is the price Apple wanted to sell them at.
 
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Chupa Chupa said:
Sure, and that was Apple's rationale for not lowering the price of the iPad -- it wasn't going to compete with lesser hardware at budget prices. Which goes back to my point of Apple not really explaining why AW is better than Fitbit if it thinks it has to now compete with them. I've owned a couple Fitbits myself. Nice, but very different than AW. Honestly a $299 AW is a no-brainer but I don't think that is the price Apple wanted to sell them at.
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I agree with you on the last line. Another way to look at it is it's been nearly a year and we still have the first-generation AW. Apple normally drops prices on the last-generation iDevice when debuting the new version on a yearly basis so perhaps they thought they might do that anyway on the low-end AW to stimulate sales in the absence of AW2. It's probably a one-time thing as they came out with version 2 one year after debuting the original iPhone and iPad.
 
Chupa Chupa said:
This. But its understandable as the AW is in a fairly new category, not unlike the original iPhone. It's hard to gauge the right price sometimes. BUT what I find odd is that in the same event where Apple basically waived the white flag and admitted AW was initially priced to high (previously it let retailer discount by $50 or $100) it RAISED the price of the well-known-to-be-struggling 9.7 iPad. It's like they don't really see the big picture.
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I can not help but to believe that Apple CAN see the "big picture".

When it come to marketing, Apple has done pretty well.
 
I'm sure it is an attempt to prop up sales a bit - but the price drop, paired with the hum-drum new bands is also a bit of a signal to the market that 'no new watch' is coming imminently. Lowering the price helps entice people to 'buy now' rather than waiting for the next generation which looks like it's further away than we might have thought.

The problem for Apple, and for everyone selling smart-watches, is that outside of fitness devices that have a very clear role, a smart-watch is not something you can easily convince people they need. It's nothing like the iPhone (and other smart-phones before them) where the added utility was SO obvious that basically everyone who saw one had to have one. (I still remember the day I brought my first Windows Mobile phone into the office and got our email set up on it. Showed it to my boss and he went down to the store that lunch hour to buy one). The benefits of a smart-watch are much more subtle, and most smart-phone buyers will probably never have the justification to buy one.
 
Chupa Chupa said:
This. But its understandable as the AW is in a fairly new category, not unlike the original iPhone. It's hard to gauge the right price sometimes. BUT what I find odd is that in the same event where Apple basically waived the white flag and admitted AW was initially priced to high (previously it let retailer discount by $50 or $100) it RAISED the price of the well-known-to-be-struggling 9.7 iPad. It's like they don't really see the big picture.
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And THIS. I think that Apple's product managers have lost sight of the market and are flailing. I normally buy a new iPad with every new relase. This will be the first time I don't. They do not offer a product for me. I like the 64GB iPad. At $600, it used to be a sweet price and the right storage for movies when I travel. But, the Pro is way overpriced and they do not even ave a 64GB option. Bye.

What surprised me most at this announcement was the complete lack of excitement and innovation. The iPhone was a retread. They did not even offer the full line of memory options. (I would bounce to an SE from my iPhone 6S, but they do not have 128GB.)

The Watch price cut and overpriced bands seems to ignore all things sensible. The watch OS is still in need of work, but hey, we can have multiple watches with a single phone now. But Activity Tracking still sucks and is 5 years out of date.
 
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Newtons Apple said:
I can not help but to believe that Apple CAN see the "big picture".

When it come to marketing, Apple has done pretty well.
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Yes, operative word there is "has." As the disclaimer goes: past performance is not a guarantee of future results. Also blind faith in leadership usually doesn't turn out well.

Apple HAS done well, but my comment is based on CURRENT action. It makes no sense to me that a company would raise the price of a product which has been suffering negative growth for multiple quarters. That's going turn off customers rather than attract them, including normal Apple lemmings like me who were excited about this model until we saw the price. Too bad Apple didn't announce on April 1. It would have been easier for them to retract and give us the right price which is the Air 2 price points sans the 16GB model and plus the 256GB model.
 
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Chupa Chupa said:
Yes, operative word there is "has." As the disclaimer goes: past performance is not a guarantee of future results. Also blind faith in leadership usually doesn't turn out well.

Apple HAS done well, but my comment is based on CURRENT action. It makes no sense to me that a company would raise the price of a product which has been suffering negative growth for multiple quarters. That isn't going turn off customers rather than attract them, including normal Apple lemmings like me who were excited about this model until we saw the price. Too bad Apple didn't announce on April 1. It would have been easier for them to retract and give us the right price which is the Air 2 price points sans the 16GB model and plus the 256GB model.
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Watch Apple sell, sell Apple sell.
 
Brett1203 said:
Apple does not drop prices on any product unless a new updated one comes out
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Or its not really selling as well as they wanted. Apple has dropped the price on existing products in the past which did not have an immediate replacement.
 
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maflynn said:
Or its not really selling as well as they wanted. Apple has dropped the price on existing products in the past which did not have an immediate replacement.
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Don't they almost always drop prices at the one-year mark when they introduce the next generation iDevice? I see it as an attempt to spur sales in the absence of AW2 and would not be surprised if the Sport is back at the $349/399 price point when they debut the AW2. The AW1 is basically considered an old dog now.
 
JayLenochiniMac said:
Don't they almost always drop prices at the one-year mark when they introduce the next generation iDevice? I see it as an attempt to spur sales in the absence of AW2 and would not be surprised if the Sport is back at the $349/399 price point when they debut the AW2. The AW1 is basically considered an old dog now.
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Two different drops, and people use them interchangeably. Apple has dropped prices of a legacy model, typically at the announcement of its successor. This typically only happens when Apple plans to continue selling the legacy model alongside the successor. (For example, the iPhone 6 dropped when they introduced the iPhone 6S, and they continued to sell the iPhone 6.)

The other scenario is when Apple drops a price independently of the announcement of a successor or replacement product. Examples are the original iPhone and Apple TV.

This one appears to be akin to a pricing adjustment like the original iPhone and ATV.

It will be interesting to follow with the AW2 to see if Apple attempts to raise the prices. They have some precedent, like with the new iPad 9.7 Pro, but it is pretty difficult. I would not be surprised if the market rejects the Pro's pricing and Apple is forced to drop that pricing.
 
maflynn said:
Or its not really selling as well as they wanted. Apple has dropped the price on existing products in the past which did not have an immediate replacement.
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A lot of retailers in the UK and USA have been offering discounts on the Apple Watch on and off since November last year. Apple must have had some feedback from these retailers so I guess it could be an adjustment to bring it more into line with the price customers are willing to pay.
 
JayLenochiniMac said:
Except the pricing adjustment wasn't across the board for the AW. Only the Sport received a $50 price cut.
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I do not see that as an exception. Rather, to me, it further supports that is a market value adjustment and not associated with successor product release.
 
exxxviii said:
I do not see that as an exception. Rather, to me, it further supports that is a market value adjustment and not associated with successor product release.
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Market value adjustment only for the low-end Sport. As someone previously said, it's likely a strategy to get those on the fence onboard and once they realize the benefits of the AW, they're more likely to get the more expensive SS models come AW2.
 
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OllyW said:
A lot of retailers in the UK and USA have been offering discounts on the Apple Watch on and off since November last year. Apple must have had some feedback from these retailers so I guess it could be an adjustment to bring it more into line with the price customers are willing to pay.
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Agreed, retailers were doing it move the inventory, and/or capitalize on the holidays. Apple lowering the price is a little different, at least I view it as different.

JayLenochiniMac said:
Don't they almost always drop prices at the one-year mark when they introduce the next generation iDevice? I see it as an attempt to spur sales in the absence of AW2 and would not be surprised if the Sport is back at the $349/399 price point when they debut the AW2. The AW1 is basically considered an old dog now.
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Yep, but in this case, they didn't unveil a new model, they just cut the price, perhaps in lieu of a new model
 
Chupa Chupa said:
This. But its understandable as the AW is in a fairly new category, not unlike the original iPhone. It's hard to gauge the right price sometimes. BUT what I find odd is that in the same event where Apple basically waived the white flag and admitted AW was initially priced to high (previously it let retailer discount by $50 or $100) it RAISED the price of the well-known-to-be-struggling 9.7 iPad. It's like they don't really see the big picture.
Click to expand...

Actually no. It's a new category for Apple, but the smart watch itself is a fairly well developed ecosystem. The iPhone was virgin territory even within the smartphone industry. Apple's only real innovation is trying to immerse it into the world of high fashion, which they essentially did by throwing money at it -- hiring top fashion execs and designers, using precious metals on the outside for the first time, marketing heavily in fashion magazines and hob-nobbing with fashion luminaries, and retailers. From my perspective, it didn't really work. They're trying to maintain the painfully thin veneer of haute couture with a new collection of bands every new fashion season, but they are falling short where traditional watchmakers, particularly the fashion watch makers which Apple is most closely competing, released new case designs as well. What's worse, there wasn't even a new fashion partner which was rumored, so the band thing isn't really even gaining traction.

Again, this is just my perception, but it seems to me that Apple desperately needs to drop the price of the watch $100 across the board. And the only way they can do that without admitting a mistake is by an annual upgrade, allowing them to naturally drop the price on the original watch, and selling it at an entry level price -- as well as giving them a variety of design styles and features for customers to choses from for the money. Apple just doesn't seem to know what to do about the watch, perhaps stymied by the fickle world of fashion into the deep end of which they've jumped head first.

And I'll raise this question again -- when Tim Cook introduced the Edition, he explicitly stated that it would be sold only in very limited quantities. At the time I took it to mean that it would be discontinued after a certain time -- truly "limited", so 'buy now'. Instead it seems he just meant only a few people would foolish enough to buy them, since the Edition is still being sold a year after its launch, with no sign of selling out. I'm pretty sure Tim Cook meant they would 'sell out' of the Edition at some point, making it a truly special product, so its persistence along with a price drop on the low end, seems to signal an overall underselling device -- at least for Apple. 50% of the market is nothing to scoff at, but unlike the iPhone, I don't see this device continuing the growth the iPhone enjoyed.
 
Mac 128 said:
Actually no. It's a new category for Apple, but the smart watch itself is a fairly well developed ecosystem.
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Honestly I stopped at "ecosystem," because your use of the word does not fit with the sentence. Smartwatches, as a category, are not an ecosystem because they don't all use the same software, web portals and are not cross compatible. That is what an ecosystem is. For example, iOS has an ecosystem in the App Store, iTMS, and iCloud. Android has an ecosystem in Google Play and other Android compatible app stores. Garmin has an ecosystem with its Garmin Connect. An Android or Apple watch cannot sync to Garmin Connect. So you see a smartwatch is not an ecosystem. It's just a category of consumer devices.

You are the one mistaken in your thought the smartwatche is not a new category. The modern smartwatch, as a product category, has only existed for about 4 years starting with the Pebble. Multi-function watches existed before then, yes. Activity bands existed before then, yes. But the true smartwatch as we understand it today is a relatively new product category that is still getting its sea legs in the consumer world. And it's anything but well developed -- it's in great flux.
 
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