Pricing Prediction

[seme332]

For some reason I think this will be the pricing Apple chooses, although I have NO idea about the Gold Edition:

Sport (Small) - 349$
Sport (Large) - 399$

Regular (Small) - 449$
Regular (Large) - 499$

Edition - 999$ and above

What do you think?

 

[mainer4101]

why the big jump from regular to edition?

I'm thinking Sport ($349), Regular ($399), Edition ($449)

They can't go over $500 for these things if they want them to take off.

 

[Nebrie]

why the big jump from regular to edition?

I'm thinking Sport ($349), Regular ($399), Edition ($449)

They can't go over $500 for these things if they want them to take off.

Gold (not gold-plate) watches cost thousands.

 

[Julien]

why the big jump from regular to edition?

I'm thinking Sport ($349), Regular ($399), Edition ($449)

They can't go over $500 for these things if they want them to take off.

18K sold gold will NOT be only $500.

 

[mainer4101]

18K sold gold will NOT be only $500.

If it's solid gold, it's going to weigh 20lbs. I'm thinking it is going to have 18k real gold, but it will be sprayed on.

 

[douglasf13]

It depends on whether the EDITION model is actually solid gold, and how much gold is in it. The Tissot Oroville 18K is the least expensive solid gold new watch that I can think of, and it is in the $3K range on discount.

Add a solid gold band to the equation, and the prices skyrocket. The 18K gold version of the Rolex Submariner retails for $25K more than the steel version.

 

[Julien]

If it's solid gold, it's going to weigh 20lbs. I'm thinking it is going to have 18k real gold, but it will be sprayed on.

Incorrect. The correct industry term is solid 18K gold. Also there is no such thing as real gold sprayed on gold (except paint). It's called electroplating. The Watch is solid 18K gold and NOT 18K gold electroplated.

 

[JayLenochiniMac]

They can't go over $500 for these things if they want them to take off.

That's why it's starting at $350.

Actual solid 18k gold will be in the thousands.

 

[mainer4101]

That's why it's starting at $350.

Actual solid 18k gold will be in the thousands.

I guess I'm just being naive, but I have a hard time grasping the logic behind Apple going after that small piece of the market where people will drop a few grand on a wearable smart device with a shelf-life of no more than 5 years. Maybe they truly are targeting the elite, but that just doesn't seem like Apple's typical approach.

 

[Julien]

I guess I'm just being naive, but I have a hard time grasping the logic behind Apple going after that small piece of the market where people will drop a few grand on a wearable smart device with a shelf-life of no more than 5 years. Maybe they truly are targeting the elite, but that just doesn't seem like Apple's typical approach.

Because they are targeting 3 groups with the same watch.

1) Sports (Super big sales and probably 1000 to 1 over Edition) - Normal people who are looking more for function.

2) Watch (large sales higher profit per device) - People who are looking for a fashion watch that is affordable.

3) Edition (small sales but super hight profit margin) - People who are going full fashion and only buy the best no matter what the cost. These people will by an Edition to wear to the country club and a Sport to play tennis in.

 

[douglasf13]

Because they are targeting 3 groups with the same watch.

1) Sports (Super big sales and probably 1000 to 1 over Edition) - Normal people who are looking more for function.

2) Watch (large sales higher profit per device) - People who are looking for a fashion watch that is affordable.

3) Edition (small sales but super hight profit margin) - People who are going full fashion and only buy the best no matter what the cost. These people will by an Edition to wear to the country club and a Sport to play tennis in.

Yeah, to the wealthy, $5K is no big deal. It could be a smart move by Apple, because, once "regular" people start seeing celebrities and wealthy people wearing an Apple Watch, it'll increase the desire. Marketing costs is what make Omega and Rolex expensive watches.

Some guys see James Bond wearing a Rolex or Omega, and so they go buy one. If they don't have the means to buy the same, they'll at least go buy a less expensive diver, as if most of those watches would see anything more extreme than a swimming pool.

Another thing just hit me. I've been assuming that Apple will radically change the design of the Apple Watch as technology improves, like the iPhone, but that may not be the case (no pun intended.) The big watch companies stay very consistent with watch designs over the coarse of decades, so Apple could follow the same approach, and this could be the same overall form factor that we see in quite a few future Apple Watch generations. Apple may even offer some kind of internals upgrade for the gold watch, if it is actually solid gold.

 

[kmj2318]

I agree with the OP.

But what about the bands? I'm guessing that the sport will come with a poly band the color of your choice. And the with the stainless steal, you can choose any of the leather or metal bands.

I can see the poly bands going for $50, and all of the metal and leather ones going for $100.

 

[TallManNY]

For some reason I think this will be the pricing Apple chooses, although I have NO idea about the Gold Edition:

Sport (Small) - 349$
Sport (Large) - 399$

Regular (Small) - 449$
Regular (Large) - 499$

Edition - 999$ and above

What do you think?

I think your prices are too low. Also price will vary with the band a bit more. Some of those bands are very very nice. They are the level of band that you would see on a $1,000 watch. Actually even higher than that. In some ways the bands are actually BETTER than what Switzerland is putting out for its best watches. The steal watch with the metal band seems like it is ready to compete with $1,000 mechanical watches. The band is certainly ready for that competition. And actually it is arguably the best metal watch band EVER. Okay getting extreme. But it seems really really good.

This is going to be a luxury item. This is not going to be the next iPhone. At least not for a few years. I'm thinking that you are adding $200 to the cost if you want to go from the plastic band to a metal or leather one. Remember Apple does charge us $35 for the iPhone 6 silcon case. They are into the high margins for add ons.

 

[douglasf13]

I think your prices are too low. Also price will vary with the band a bit more. Some of those bands are very very nice. They are the level of band that you would see on a $1,000 watch. Actually even higher than that. In some ways the bands are actually BETTER than what Switzerland is putting out for its best watches. The steal watch with the metal band seems like it is ready to compete with $1,000 mechanical watches. The band is certainly ready for that competition. And actually it is arguably the best metal watch band EVER. Okay getting extreme. But it seems really really good.

This is going to be a luxury item. This is not going to be the next iPhone. At least not for a few years. I'm thinking that you are adding $200 to the cost if you want to go from the plastic band to a metal or leather one. Remember Apple does charge us $35 for the iPhone 6 silcon case. They are into the high margins for add ons.

I think that's a good point. An Omega Seamaster bracelet costs $800 on its own! Granted, Apple isn't building these things in Switzerland, so I'd have to assume the bracelet price won't be close to that, although the quality certainly seems to be very good.

 

[mainer4101]

Lets say the sport band is standard. So:

$349 for sport watch with band
$499 regular watch with sport band
$599 for regular watch with metal band
$649 for regular watch with metal band
$999 for Edition watch with sport band
$1099 for Edition watch with metal band
$1149 for Edition watch with leather band
$1499 for Edition watch with Edition-style band

I can imagine a lot of upset people. Not saying it won't happen, but if it does then get ready for quite the s*it storm. (edit: meaning, if they use the bands as a means of driving up the price)

 

[Nicolecat]

why the big jump from regular to edition?

I'm thinking Sport ($349), Regular ($399), Edition ($449)

They can't go over $500 for these things if they want them to take off.

I think I remember seeing somewhere that the sport watch doesn't have the sapphire glass...so more of a jump between that and the stainless.

But I can't see spending anywhere a jump for the edition being as drastic as some predictions...simply because it's the same features from each one...just different finishes.

----------

I imagine the bands sold individually could be $30-$60...depending on material (priced similarly to the case offerings they usually show out with)

 

[TallManNY]

I think that's a good point. An Omega Seamaster bracelet costs $800 on its own! Granted, Apple isn't building these things in Switzerland, so I'd have to assume the bracelet price won't be close to that, although the quality certainly seems to be very good.

If you went through Daring Fireball and read that review by a "watch guy" he raves about the bands. I also love the look of them. Apple might not gauge like Omega, but Apple is not above its own form of gauging when it comes down to accessories and add ons (see markup for RAM, see markup on iPhone cases).

When people want that second band to spruce up their watch, they are going to have to drop a pretty penny.

That said, there will be replicas available. It is just a physical object and at a lesser quality can be basically duplicated. So if you don't mind risking your clasp failing, you will be able to buy a $40 band that fits into those slots in the watch.

----------

Folks. A SOLID GOLD watch is not being sold by Apple for less than $2,000. Assuming they mean what they say, that the entire body of the watch is made of gold, this is going to be a $10,000 watch.

Well maybe it won't be that much. But it will certainly be at least $5,000. And it might be $20,000. Fancy watches made of gold often go for that much.

Again, this is not gold plating according to their description. It is a hunk of crafted gold, plus a watch band with gold accents if you want.

 

[sromurcam76]

Here is my WATCH pricing prediction.
I also created these pics.
I know 18-Karat gold costs $30 per grams, but if they can manage this pricing, it is going to be a hit
I think $50 incremental increase of price is going to be very effective.
18-Karat gold casing is going to be very thin supported by other metals inside so only 10 grams of gold is used and costs only about $300.
If WATCH EDITION is under $1000, people might be able to afford them for upgrade every year.

WATCH SPORT
• 38mm Silver Aluminum Case with White Sport Band - $349
• 42mm Silver Aluminum Case with White Sport Band - $399
• 38mm Silver Aluminum Case with Blue Sport Band - $349
• 42mm Silver Aluminum Case with Blue Sport Band - $399
• 38mm Silver Aluminum Case with Green Sport Band - $349
• 42mm Sliver Aluminum Case with Green Sport Band - $399
• 38mm Silver Aluminum Case with Pink Sport Band - $349
• 42mm Silver Aluminum Case with Pink Sport Band - $399
• 38mm Space Gray Aluminum Case with Black Sport Band - $349
• 42mm Space Gray Aluminum Case with Black Sport Band - $399

WATCH
• 38mm Stainless Steel Case with White Sport Band - $399
• 42mm Stainless Steel Case with White Sport Band - $449
• 38mm Stainless Steel Case with Black Sport Band - $399
• 42mm Stainless Steel Case with Black Sport Band - $449
• 38mm Stainless Steel Case with Black Classic Buckle -$449
• 42mm Stainless Steel Case with Black Classic Buckle - $499
• 38mm Stainless Steel Case with Soft Pink Modern Buckle - $499
• 38mm Stainless Steel Case with Brown Modern Buckle - $499
• 38mm Stainless Steel Case with Midnight Blue Modern Buckle - $499
• 42mm Stainless Steel Case with Stone Leather Loop - $549
• 42mm Stainless Steel Case with Bright Blue Leather Loop - $549
• 42mm Stainless Steel Case with Light Brown Leather Loop - $549
• 38mm Stainless Steel Case with Stainless Steel Link Bracelet - $549
• 42mm Stainless Steel Case with Stainless Steel Link Bracelet - $599
• 38mm Space Black Stainless Steel Case with Space Black Stainless Steel Link Bracelet - $549
• 42mm Space Black Stainless Steel Case with Space Black Stainless Steel Link Bracelet - $599
• 38mm Stainless Steel Case with Milanese Loop - $599
• 42mm Stainless Steel Case with Milanese Loop - $649

WATCH EDITION
• 38mm 18-Karat Rose Gold Case with White Sport Band - $699
• 38mm 18-Karat Rose Gold Case with Rose Gray Leather Modern Buckle - $799
• 38mm 18-Karat Yellow Gold Case with Bright Red Leather Modern Buckle - $799
• 42mm 18-Karat Rose Gold Case with White Sport Band - $799
• 42mm 18-Karat Yellow Gold Case with Black Sport Band - $799
• 42mm 18-Karat Yellow Gold Case with Midnight Blue Leather Classic Buckle - $899

 

[sromurcam76]

The rest of the pictures

 

[ditzy]

I think $50 incremental increase of price is going to be very effective.

18-Karat gold casing is going to be very thin supported by other metals inside so only 10 grams of gold is used and costs only about $300.

If WATCH EDITION is under $1000, people might be able to afford them for upgrade every year.

This would be false advertising and so illegal in many countries. It's going to be solid 18 carat gold, and very expensive. I'm hoping $1000, but I think I'm probably being naive and that it will be more than that.

 

[douglasf13]

This would be false advertising and so illegal in many countries. It's going to be solid 18 carat gold, and very expensive. I'm hoping $1000, but I think I'm probably being naive and that it will be more than that.

Yeah, as I mentioned earlier, I can't think of a watch on the market that is solid gold and less than $3K. I guess it'll depend on how much metal is in that case.

 

[mattopotamus]

For some reason I think this will be the pricing Apple chooses, although I have NO idea about the Gold Edition:

Sport (Small) - 349$
Sport (Large) - 399$

Regular (Small) - 449$
Regular (Large) - 499$

Edition - 999$ and above

What do you think?

I think that is a good starting spot. The user who went extremely in depth took it to another level, but is probably pretty close to right.

 

[OllyW]

Here is my WATCH pricing prediction.
I also created these pics.
I know 18-Karat gold costs $30 per grams, but if they can manage this pricing, it is going to be a hit
I think $50 incremental increase of price is going to be very effective.
18-Karat gold casing is going to be very thin supported by other metals inside so only 10 grams of gold is used and costs only about $300.
If WATCH EDITION is under $1000, people might be able to afford them for upgrade every year.

Estimates are putting the cost of the gold case alone at around $600.

High-End 18-Karat Gold Apple Watch Could Cost Up to $1,200

 

[Blakjack]

Yeah, to the wealthy, $5K is no big deal. It could be a smart move by Apple, because, once "regular" people start seeing celebrities and wealthy people wearing an Apple Watch, it'll increase the desire. Marketing costs is what make Omega and Rolex expensive watches.

Some guys see James Bond wearing a Rolex or Omega, and so they go buy one. If they don't have the means to buy the same, they'll at least go buy a less expensive diver, as if most of those watches would see anything more extreme than a swimming pool.

Another thing just hit me. I've been assuming that Apple will radically change the design of the Apple Watch as technology improves, like the iPhone, but that may not be the case (no pun intended.) The big watch companies stay very consistent with watch designs over the coarse of decades, so Apple could follow the same approach, and this could be the same overall form factor that we see in quite a few future Apple Watch generations. Apple may even offer some kind of internals upgrade for the gold watch, if it is actually solid gold.

LeBron James or Russell Westbrook(NBA's Fashinista) wearing the gold Edition with a bright red leather band in a post game interview. HUUUUGE!!! The average viewer of an NBA basketball game can't afford the edition, but they can probably somehow come up with the money for the regular version. And just because they added the word "Sport" to the sport version.....athletes of all kinds will be buying these up just like they do with Beats headphones.

There is no way that these watches won't do well in the sales department. They may not be the smart watch some of us was waiting on, but technology today has blended with fashion and become a part of the culture like never before. The tech doesn't have to perform at a high level, it just has to sell sexy.

 

[douglasf13]

LeBron James or Russell Westbrook(NBA's Fashinista) wearing the gold Edition with a bright red leather band in a post game interview. HUUUUGE!!! The average viewer of an NBA basketball game can't afford the edition, but they can probably somehow come up with the money for the regular version. And just because they added the word "Sport" to the sport version.....athletes of all kinds will be buying these up just like they do with Beats headphones.

There is no way that these watches won't do well in the sales department. They may not be the smart watch some of us was waiting on, but technology today has blended with fashion and become a part of the culture like never before. The tech doesn't have to perform at a high level, it just has to sell sexy.

I completely agree. The Apple Watch is likely to be the first thing to bridge the techie/fashion gap.

Get one on LeBron, Rory McIlroy, Serena Williams and a couple of actors and actresses with some Rolex/Omega style adds, and it'll make a huge difference.