Prices have to be lower.
If you buy a $5k+ watch like a cheap Rolex, you still expect it to last decades, or to turn into an heirloom piece (particularly once you go up the echelon of luxury watches)
If Apple doesn't have a modular, upgradable core in mind for its watches, then something they expect users to replace every few years has to be a be in the 3-digit range.
Given that Apple needs every bit of volume inside the watch for battery space and strengened the structure by making all the guts essentially into a solid block of resin, and that they are using an especially hard 18k Gold alloy, I'd say the case itself is rather thin, thus the gold price should allow Apple to come in at the $999.- price for the gold version. With the plastic version at $350.- this puts the steel somewhere at $550 or $650.
Of course some idiots would spend $5k for a disposable gold watch, but I would hope not nearly enough to keep Apple's manufacturing pipeline busy.
I'm beginning to think that Jony Ive has lost his mojo. I'm monumentally unimpressed with the overall watch design, it looks clunky and some of the design guess images before the release were way better. It pretty much ignores the fact that 99% of the population doesn't wear a watch, and this one (which isn't waterproof) doesn't have any killer features. Apple will make a ton of money from initial interest, then they'll stop dev on it in a few years.
I am a in the wait and see on the naked wrist population. However, Unless you look like one of those folks with Jony, you and I together know very little about fashion. It amazes me what people will wear, so I know I am no fashion critic and will not criticize at this point.
Here's my forecast: The ?Watch Edition will not be $5,000 or $10,000 like a lot of people are predicting. When Jony Ive said the Swiss watch industry is "fucked" what he meant was that Apple is going to refuse to play the game of charging $20,000 or $30,000 extra for $600 worth of gold. Well, maybe they'll charge $800 as a hedge against price increases. I'll bet that $1200 prediction is right on the money.
I don't think the gold Apple Watches will cost "as much as $5,000", it's more likely they will *start* at around $5,000. Solid gold watches cost a bomb, the gold Apple Watch is solid 18K gold, it's going to cost a fortune, and likely be sold in elite jewler's and premium boutiques as well as Apple stores . But it will still be very price-competitive in a high-end fashion and collector's watch market that is relaxed about watches that cost anywhere from $10,000 - $200,000.
And those craftsman made Milano stainless bracelets and Italian leather straps? They're likely going to cost more than the full price of an entry-level Apple Sport watch with the plastic band included. Hundreds of dollars at least. People who can afford gold Rolexes and so forth won't even blink, in fact they won't take the Apple Watch and its accessories seriously *unless* it costs a lot. That's the luxury market for you.
No, in fact I think the biggest threat to the Apple Watch in the luxury watch market will be if they don't price it high enough. The luxury market the gold models appear to be aiming for is totally fine with absurdly expensive timepieces and accessories, it's a mark of seriousness and the very public advertising of the owner's wealth that they crave.
The gold Apple Watch is for the Chinese billionaires, the Russian oligarchs and the Saudi oil sheiks who buy their wives (and mistresses) multiple $30,000+ couture outfits and several $2,000+ pairs of shoes every six months or so, and upgrade their private jets more often than we buy a new iPhone. Even if the gold Apple Watch isn't modular and upgradeable Apple will still be able to sell them in the $5-10k range, if they do in fact make them upgradeable then the sky's the limit price-wise.
They don't have to sell millions, still less tens of millions, of gold Apple Watches, the mark up on these is likely going to be typically astronomical as per the luxury market - 500-1,000% or more. They'll make a very nice profit out of selling less than a half a million gold Apple Watches a year, likely less than that in fact (but don't expect Apple to ever break down Watch sales by edition, that's not going to happen). The Sport edition will sell in the tens of millions (eventually hundreds of millions hopefully), the stainless will sell in the single-digit millions and the the gold ones will sell in the tens to hundreds of thousands per year. Yet the gold models will likely make up a very significant percentage of the Watch's overall profits. That's the beauty of the luxury market.
Comments
The iPhone6 can be used with polorized lenses.
Pretty sure the Watch will be the same.
That's cool. I had no idea. Thanks.
Where are you buying "cheap" Rolex watches?
http://www.thewatchquote.com/List-Price-and-tariffs-for-Rolex-watches-No_61.htm
Jony looks like he just stepped off the plane after a 20 hour flight
I'm beginning to think that Jony Ive has lost his mojo. I'm monumentally unimpressed with the overall watch design, it looks clunky and some of the design guess images before the release were way better. It pretty much ignores the fact that 99% of the population doesn't wear a watch, and this one (which isn't waterproof) doesn't have any killer features. Apple will make a ton of money from initial interest, then they'll stop dev on it in a few years.
I am a in the wait and see on the naked wrist population. However, Unless you look like one of those folks with Jony, you and I together know very little about fashion. It amazes me what people will wear, so I know I am no fashion critic and will not criticize at this point.
Looks more like the cast of American Horror Story Freak Show.
Replace the key and help home automation and car automation know who you are, where you are, and respond to that data.
Telling the time is the least exciting part. The fashion will change to conform to function.
They are making a mistake pandering to fashionistas... Make it great and they will conform to you.
Waterproof location services and user authentication is what we NEED.
Replace the key and help home automation and car automation know who you are, where you are, and respond to that data.
Telling the time is the least exciting part. The fashion will change to conform to function.
They are making a mistake pandering to fashionistas... Make it great and they will conform to you.
And this is based on your experience running what multi-billion dollar fashion and/or design-intensive company? Apple, St. Laurent, or Burberry?
It's the combo of the two that eats every competitor's lunch.
Isn't Sammy on their 5th watch iteration and still treading water?
While Apple was showing off their watches inside, Sammy was working the crowd outside (as usual):
And those craftsman made Milano stainless bracelets and Italian leather straps? They're likely going to cost more than the full price of an entry-level Apple Sport watch with the plastic band included. Hundreds of dollars at least. People who can afford gold Rolexes and so forth won't even blink, in fact they won't take the Apple Watch and its accessories seriously *unless* it costs a lot. That's the luxury market for you.
No, in fact I think the biggest threat to the Apple Watch in the luxury watch market will be if they don't price it high enough. The luxury market the gold models appear to be aiming for is totally fine with absurdly expensive timepieces and accessories, it's a mark of seriousness and the very public advertising of the owner's wealth that they crave.
The gold Apple Watch is for the Chinese billionaires, the Russian oligarchs and the Saudi oil sheiks who buy their wives (and mistresses) multiple $30,000+ couture outfits and several $2,000+ pairs of shoes every six months or so, and upgrade their private jets more often than we buy a new iPhone. Even if the gold Apple Watch isn't modular and upgradeable Apple will still be able to sell them in the $5-10k range, if they do in fact make them upgradeable then the sky's the limit price-wise.
They don't have to sell millions, still less tens of millions, of gold Apple Watches, the mark up on these is likely going to be typically astronomical as per the luxury market - 500-1,000% or more. They'll make a very nice profit out of selling less than a half a million gold Apple Watches a year, likely less than that in fact (but don't expect Apple to ever break down Watch sales by edition, that's not going to happen). The Sport edition will sell in the tens of millions (eventually hundreds of millions hopefully), the stainless will sell in the single-digit millions and the the gold ones will sell in the tens to hundreds of thousands per year. Yet the gold models will likely make up a very significant percentage of the Watch's overall profits. That's the beauty of the luxury market.
British body language is quite different from American. Get over it.
The Apple folks won't be winning in any fashion shows.
They will if the contest is who can buy the most outfits from the collection being shown.
For some reason I had a flash back to Polanski's Dance of the Vampires.