Would someone pay jewlery store prices for something that becomes obsolete?

[Izauze]

Coming from someone who has never and would never invest in expensive jewelry of any kind, allow me to ask - would people really pay top-shelf prices for something that will be considered a top-shelf device for one or two years at the most?

I suppose Apple doesn't need to sell many of the gold watches to make it a successful venture, but I always thought that part of the draw of these big ticket items was that it would be something you could show off proudly for years to come - even pass on. If I was a person of means inclined to such things, I would be embarrassed wearing it as soon as there was a newer, better, more-capable model and form factor. Once people can quickly identify it as being outdated, doesn't it go from being a marker of status to a symbol of stupidity?

 

[BMcCoy]

If anyone has the selling technique to pull it off, it's Apple.

You watch the keynote today... they will make even the most skeptical amongst us consider buying one...

This is a company that knows how to make you want something, regardless of cost.


But yes, in the 'cold light of day', this is a very niche product.. a fashion accessory with short lifespan. Premium. Luxury even. They won't sell them on the scale of the phones, but they will sell some.

 

[Chupa Chupa]

Coming from someone who has never and would never invest in expensive jewelry of any kind,

So you are never getting married?

To your answer:

This has been beaten to death here, but the simple answer is Apple isn't targeting the middle class with the 18K version. They are going after the ultra income, ultra high net worth crowd, and really the nouveau riche subset. The target buyer isn't looking for long term value, but the short term "it" factor.

$2,3,4,5K to an avg person would require a lot of consideration. To someone who makes 50-100K a month it's not such a big deal. They can buy today's model and next years too if they want. They jus pop out the Amex Black card. (BTW the Black Card costs $2500 a year... for the privilege of putting the card in your wallet. Different world not comparable to ours.

 

[AFEPPL]

But in fairness - that type of jewellery will retain its value should you want or need to sell it. Whereas the apple watch has little if any jewellery value going forward, so yeah its obsolete in 6months. And no, id not pay that even though i earn more than 100k. I'd rather get another Omega or Tag Carrera.

 

[Chupa Chupa]

But in fairness - that type of jewellery will retain its value should you want or need to sell it. Whereas the apple watch has little if any jewellery value going forward, so yeah its obsolete in 6months. And no, id not pay that even though i earn more than 100k. I'd rather get another Omega or Tag Carrera.

Right but that is where everyone is making the wrong logical turn. It's not true jewelry to them -- true jewelry costs multiple thousands, not single, except for maybe a stick pin. Think fashion item, just as Apple is positioning it. A $5K suit or dress that gets worn a few times before its donated.

Again - spending $5K for an avg person is a financial consideration. $5K to someone making $500K plus a year is like you and me buying a candy bar.

PS $100K is chump change income. Talking about wealthy people not merely well off.