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Will Apple raise the price of the Apple Watch?

Rogifan

Rogifan

macrumors Penryn
Original poster
Nov 14, 2011
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We’ve seen stories of some European filings that indicate only 3 Watch models. If that’s the case one could assume all models will be LTE only now. Currently the aluminum without LTE model starts at $329 and is $50 cheaper than the LTE version. When Apple introduced the Series 3 last year they got rid of the Series 2 but kept the Series 1 around as the entry level Watch starting at $249. When they introduce the Series 4 what happens to the Series 1 and 3? I can’t see them brining the Series 2 back nor dropping the price of the Series 3 by $80. Also if Series 4 is LTE only is the starting price $399 or do they make the LTE version $50 cheaper to match the current $329 GPS only price point?

As of late it seems Apple tries to find a way to raise the average selling price of their products but I think making the only options for Apple Watch more expensive would be a bad move for the product. If anything Apple should try to get the entry point down to $199 (the Watch would sell like hot cakes then) but I’m not sure how they would do that with the current lineup. I’ll be very interested to see what the lineup and price points are.
 
Bazooka-joe said:
Without a doubt. I expect a 10% price increase. IPhones and Ipads have increased in price with each new generation so expect the same for the series 4
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And what feature/new hardware will justify that price increase?
 
Have you guys not read the news that has came out? Apple’s top seller by far is the cheaper series 1, it would be suicided to the Apple Watch to raise the price. What I can see happening is dropping the price on the Series 3, a bit more than the Series 1 current price and use the Series 4 as the SS/ceramic more expensive options.
 
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TJ82 said:
It's pretty much a cert that the prices will come up. They're shameless and know they can get away with it, so why not.

Fleece the planet.
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I hope not. The Watch is still considered an accessory to most people. And it’s a product category that seemingly is still growing. Like I said if anything they need to get the entry level Watch price to $199.
 
if the rumors that they may drop the WiFi-only model are true, that is in effect raising the price. Every unit sold that should have been a WiFi-only brings in extra revenue.
 
iFan83 said:
Have you guys not read the news that has came out? Apple’s top seller by far is the cheaper series 1, it would be suicided to the Apple Watch to raise the price. What I can see happening is dropping the price on the Series 3, a bit more than the Series 1 current price and use the Series 4 as the SS/ceramic more expensive options.
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I don’t think they should raise prices but Ben Bajarin claims that story about S1 generating the most sales is false.

ACAci2KC_normal.jpg
Ben Bajarin (@BenBajarin)
8/31/18, 3:47 PM
Few reports out saying Apple Watch Series 1 was the volume seller last quarter. This is not what we see or have heard from retailers.

The revenue Watch represents as part of Apple’s “other” category plus consensus volume suggests higher ASP not lower.
Click to expand...
 
It’s possible. If you look at the iPad for example, that also has increased over the years. But I’m not sure that they will raise the price for all of the Apple Watch models, it may be just for certain models. If They do, I expect no more than a $50 price hike.
 
Rogifan said:
We’ve seen stories of some European filings that indicate only 3 Watch models. If that’s the case one could assume all models will be LTE only now. Currently the aluminum without LTE model starts at $329 and is $50 cheaper than the LTE version. When Apple introduced the Series 3 last year they got rid of the Series 2 but kept the Series 1 around as the entry level Watch starting at $249. When they introduce the Series 4 what happens to the Series 1 and 3? I can’t see them brining the Series 2 back nor dropping the price of the Series 3 by $80. Also if Series 4 is LTE only is the starting price $399 or do they make the LTE version $50 cheaper to match the current $329 GPS only price point?
Click to expand...

All good questions. I see the S4 retain the price of S3 LTE, or a bit more expensive but I think likely retaining. If someone don’t want to pay LTE price then they’ll have plenty of refurbished or second hand S3 which I’m sure will be sold below $300. A good price.

Rogifan said:
As of late it seems Apple tries to find a way to raise the average selling price of their products but I think making the only options for Apple Watch more expensive would be a bad move for the product. If anything Apple should try to get the entry point down to $199 (the Watch would sell like hot cakes then) but I’m not sure how they would do that with the current lineup. I’ll be very interested to see what the lineup and price points are.
Click to expand...

You said it yourself on the 1st paragraph. $199 could very well be a new low price point with S1. This will be an ideal choice for kids and old people.
 
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I don’t think the price will increase, per say. But Apple could definitely do some sneaky stuff to get higher priced models in there. For example, it’s possible that Apple would do something like make Series 4 LTE only, or make it SS only, or perhaps make the gold SS a premium price (similar to the Black SS). So from that aspect there could be ways Apple is trying to get more money without increasing the price by an apples-to-apples comparison.

Oh wait, I just thought of another way Apple could increase the price... The screen size. Right now we have 38mm and 42mm... if they move that up to say 42mm and 48mm I could see the 42mm keeping the same cost as the old 42mm, but then the 48mm would push the price up slightly.

I do think it’s interesting to see what Apple does with the budget model.... Will they keep the S1? At same price or lower? Will they put the S3 to replace the S1? If so, would the cost be able to go as low as the S1?
 
AsherN said:
I could see them killing both the S1 and the S3 LTE. The S3 WiFi becomes the new entry point at a reduced price.

i really hope there is a non-LTE S4.
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I'm also inclined with this trajectory. S3 chip in a S1 body to keep the costs down and margins high.
 
matrix07 said:
If someone don’t want to pay LTE price then they’ll have plenty of refurbished or second hand S3 which I’m sure will be sold below $300. A good price.
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I would think unlike the "enthusiasts" who frequent this and other Apple websites, the majority of casual apple customers are totally unaware of the refurb route. The Apple Watch has never even been offered for sale on the UK or other European refurb sites so it's not going to help that many people if Apple do decide to increase the prices next week.
 
OllyW said:
I would think unlike the "enthusiasts" who frequent this and other Apple websites, the majority of casual apple customers are totally unaware of the refurb route. The Apple Watch has never even been offered for sale on the UK or other European refurb sites so it's not going to help that many people if Apple do decide to increase the prices next week.
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Then maybe Apple will keep WiFi S3 and price it $299? That will be a very good price for a very good watch. Coupled with $199 for S1 Apple will have everything for everybody.
I’d say this is a better strategy for Apple than having WiFi S4. :D
 
matrix07 said:
Then maybe Apple will keep WiFi S3 and price it $299? That will be a very good price for a very good watch. Coupled with $199 for S1 Apple will have everything for everybody.
I’d say this is a better strategy for Apple than having WiFi S4. :D
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Disagree. The S4 is a new form factor. I see no reason to keep the S1. S3 ether in both Lte and WiFi or just WiFi satisfies the low end.
 
AsherN said:
Disagree. The S4 is a new form factor. I see no reason to keep the S1. S3 ether in both Lte and WiFi or just WiFi satisfies the low end.
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I agree.
I am guessing that the S3 aluminium and SS will be the new entry level watches (LTE only) with 38 and 42mm form factors. That way they will no longer have to manufacture non-LTE watches. People won't have to take LTE under contact. LTE will be there if ever they decide to adopt it.

The S4 will be the bezel free larger form factor and will also be LTE only. Aluminium, SS and either a flagship ceramic or new material. The S4 will be more expensive than the S3's were last year.
 
Last year, the starting price of Watch dropped by $20. I would expect Apple to raise the price of S4 back to $349.

  • S0 starting price - $349
  • S1 starting price - $249
  • S2 starting price - $369
  • S3 starting price - $329

I'd be surprised if Apple didn't kill the S3 in order to widen the gap between S1 and S4. Many non-cellular users are choosing the S1 simply for cost. The choice between S1 vs. S4 will be stark and buyers will have a much tougher choice than S1 vs. S3.
 
JPack said:
I'd be surprised if Apple didn't kill the S3 in order to widen the gap between S1 and S4. Many non-cellular users are choosing the S1 simply for cost. The choice between S1 vs. S4 will be stark and buyers will have a much tougher choice than S1 vs. S3.
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I think it will depend on how much longer Apple thinks it can upgrade watchOS on the S1. They would not do themselves any favours to have the S12 as the entry level and stop updates a year later.
 
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