What's your theory as to why SS AW0 has depreciated more than aluminum AW0?

Discussion in 'Apple Watch' started by Luba, Sep 18, 2016.

  1. Luba macrumors 6502a

    Luba

    Joined:
    Apr 22, 2009
    #1
    In another thread a poster did some research and saw that the SS AW0 has depreciated 10% more than the aluminum AW0. The Milanese and Link versions of AW0 have depreciated even more than 10%. Reading other posts here and feeling out the resale market, that above info sounds about right. I figured they both (SS and aluminum) would depreciate at the same rate, or if not at the same rate that the SS would hold up better, especially the Milanese and Link.

    Where did I go wrong with my thinking? Do the "high end" iPhones depreciate faster than the low ends ones?
     
  2. CVC macrumors member

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    #2
    People buying used ones are probably more interested in fitness tracking than fashion. Also, people may be buying the least expensive one they can find to try it out, unsure if they'll like it. I have a sport series 0 because I didn't want to spend the money on the SS only to have it lay in a drawer if I didn't use it.
     
  3. lordofthereef macrumors G5

    lordofthereef

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    #3
    I feel like the more expensive products always depreciate more as a percentage of their original value. Look st storage sizes in iPhones. That extra $100 or $200 you drop on the device is alsmor completely lost when selling.

    I think the reality is when people st ebuyingb anused product they aren't necesssry looking for luxury. They just want something that works.

    As a anecdote I love my aluminum and am very excited to see how long I love it. I could just be in a honeymoon phase. It so far it's everything I expected and maybe a little more. I MAY consider a more luxury finish if and when they let the Watch be autonomous from the phone. For now I'm content with what I have but I also spent my money knowing that I'd likely get back less then half if I decided to sell it next update cycle.
     
  4. BarracksSi Suspended

    BarracksSi

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    #4
    It had farther to fall.

    The SS AW0 also has less horsepower under the hood than the Series 1 does.
     
  5. JayLenochiniMac macrumors G5

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    #5
    You'll always recoup more of your costs with the base model of almost anything. This is also true when selling vehicles.
     
  6. jermy4 macrumors demi-god

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    Jun 27, 2010
    #6
    Seems like most people who are buying 2nd hand aren't placing much value on the nicer case material. They look at it as a gadget more than a fine piece of jewelry. I think Apple has picked up in this because on the original Apple Watch launch they really talked up the fine jewelry aspect and for this launch it was all about fitness instead. If you're buying new it's hard to justify spending more on the stainless with the more expensive bands since it will still be outdated in a couple of years and if you always want the most current version it might make financial sense to buy the cheapest watch each time.

    I'm struggling with this because I picked up a cheap used original Apple Watch a few months back to see if I would even like it and I do really like it a lot and would love to update to a S2 SS model but it would be a hard pill to swallow the horrible resale value in 1-2 years when I go to upgrade again. I'm holding onto my original for awhile and when there are sales at Best Buy or other retailers on the series 2 I'll revisit upgrading.
     
  7. Arran macrumors 68040

    Arran

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    #7
    Yeah, the trick might be to just ignore the latest release and stay one generation behind?
     
  8. exxxviii macrumors 65816

    exxxviii

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    #8
    The SS had been discounted at a variety of retail stores by $200. While discounts on the aluminum had only been discounted $50. The discounts are what drove the depreciation. If you compare the used value of an aluminum against its lowest retail price versus the same for SS, I bet the percentage depreciation is not so big. But, if you calculate depreciation against MSRP, it artificially looks worse.
     
  9. KrisLord macrumors 65816

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    #9
    As someone who had a space grey sport and upgraded to an Space grey S1 I never really understood the price differential between Aluminium and SS. Did the black SS look a bit better than the aluminium? Yes but maybe £50 more, or the actual price difference that Apple wanted. This was especially true considering that the base SS came with the same sport band as the sport model.

    This was especially true in a first gen product that is likely to see significant improvements in performance each year.
     
  10. BarracksSi Suspended

    BarracksSi

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    Jul 14, 2015
    #10
    Tiered pricing. Lots of companies do it, from other watch manufacturers to car manufacturers to cable companies.

    If you could get, say, a Honda Accord for just a thousand bucks more than the price of a base Civic, would you? Probably yes, right, because you're getting a lot more car for a small amount of money.

    The price gaps between the aluminum and SS watches are just enough to make a buyer think twice, but not so much as to put the more expensive one totally out of reach.
     
  11. Newtons Apple macrumors P6

    Newtons Apple

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  12. HopefulHumanist macrumors 6502a

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    #12
    Exactly; this isn't unique to the watch at all.
     
  13. cdmoore74 macrumors 68020

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    Jun 24, 2010
    #13
    Me personally this is a throwaway tech gadget, not something I'm going to use after 2 years. So if the faster model is only $299 I wouldn't even entertain a used gen 1 over $200 even if it cost $1000 at retail. That's just me.
    Just wait and see what happens to your $600 plus Series 2 when a completely redesigned, more feature packed and cheaper Gen 3 comes out 12 to 18 months from now.
     
  14. nfl46 macrumors 603

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    #14
    Its crazy how much they dropped. You can get brand new open box 38mm SS on eBay for $200 or less now a days.
     
  15. nhlducks35 macrumors regular

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    Jun 15, 2008
    #15
    Same way more expensive cars depreciate faster
     
  16. Luba thread starter macrumors 6502a

    Luba

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    Apr 22, 2009
    #16
    Maybe it's gone up as it could be a collectible now since Apple doesn't make the Gold Edition anymore.
    --- Post Merged, Sep 18, 2016 ---
    Wow, under $200 for a SS. Maybe because it's a 38 and not a 42??
     
  17. nfl46 macrumors 603

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    Oct 5, 2008
    #17
    Yes, 38mm tend to be cheaper than the 42. You will probably see 38/42 (Series 0) Aluminum going for 99/149 on Black Friday...of course not through Apple.
     
  18. KrisLord macrumors 65816

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    #18
    I just found the price gaps rather large. Normally when you buy the next model up with a car you get a significantly improved product. With Apple Watch it was just an an improved finish.
     
  19. BarracksSi Suspended

    BarracksSi

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    Jul 14, 2015
    #19
    Plus sapphire face glass and ceramic back (which I think is awesome, and looks good with the machine steel lens surrounds).

    But, again, it's just enough of a price difference to (A) make people think, "Eh, the SS isn't too much more..." or (B) "Ya know, the aluminum one is a lot cheaper..."

    I convinced my wife to let me spring for the SS w/ black sport band because I (and she) felt it was more stylistically versatile, and it would still look better if I were to get one of the steel bracelets or leather straps later. Turns out it's so versatile that I haven't felt like buying another band yet. ;-p
     
  20. frumpy16 macrumors 6502a

    frumpy16

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    Dec 8, 2008
    #20
    It's a clear sign that the upgrades were overpriced relative to their value. The only truly value added part of the watch is inside the watch. The rest is lipstick.
     
  21. bjet767 macrumors 6502a

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    Oct 2, 2010
    #21
    There's an old saying about real estate, "buy the cheapest house in the most expensive neighborhood you can afford. "

    Another similar idea is, "an orchestra is only as good as its weakest musician."

    I bought the aluminum space gray in 0 and just ordered the aluminum gold and cocoa band in 2. Same low price relative to top models.
     
  22. Sharkey311 Suspended

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    Jan 11, 2013
    #22
    I sold my S0 Silver SS 42mm with white sport band for a measly $245 when it was a $650+ watch. Sucks to say the least.
     
  23. ketchup4life06 macrumors member

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    Jul 31, 2010
    #23
    I had 42mm S0 AWS that I sold 8 months after launch for $350 and just picked up a used 42mm S0 SS with Milanese loop, leather loop, and 5 sport bands (all fantastic condition) for $245 on eBay. I felt like I was stealing from the seller...as all that at retail must have cost them over 1k. They definitely depreciated much more than I expected.
     
  24. Luba thread starter macrumors 6502a

    Luba

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    #24
    If it's an consolation what you got sounds about the market price.
     
  25. dukebound85 macrumors P6

    dukebound85

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    #25
    Goes to show the apple watch is not jewelry and only a tech piece and the price will behave as such.

    Meanwhile, a Rolex from 2 years ago maintains its value
     

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