As long as they can keep the margins that they are aiming for, they will try to make and sell the watches as cheaply as possible. That's how they will sell more units and therefore make more profit.
It isn't the materials alone of the Apple Watch Sport model that is making it $350 - the entry level is priced that way as Apple believes the product is worth that - its value to the user is worth that.
Right, just like the Edition has nowhere near enough gold in it to justify the $17,000 price tag. Especially since Apple has patented the process which allows them to make an 18K gold watch "with as little gold as possible". There's a lot of intangibles in these watches.
However, I do think that Apple is looking down the road as to how they can expand the user base to get the watch into as many hands as possible, including those for whom $349 is otherwise a barrier (as long as they don't sacrifice their margins in the process). I'd look for this year's Sport Watch to cost $299 this time next year when the new models come out, especially since the 5S will be their free iPhone, and make it a lot more attractive to instead spend $300 on a cool accessory that gives them ?Pay among other nifty features. I wonder if the mobile phone carriers will start carrying any models of the watch in store, to encourage that kind of purchase?
It isn't the materials alone of the Apple Watch Sport model that is making it $350 - the entry level is priced that way as Apple believes the product is worth that - its value to the user is worth that.
Right, just like the Edition has nowhere near enough gold in it to justify the $17,000 price tag. Especially since Apple has patented the process which allows them to make an 18K gold watch "with as little gold as possible". There's a lot of intangibles in these watches.
However, I do think that Apple is looking down the road as to how they can expand the user base to get the watch into as many hands as possible, including those for whom $349 is otherwise a barrier (as long as they don't sacrifice their margins in the process). I'd look for this year's Sport Watch to cost $299 this time next year when the new models come out, especially since the 5S will be their free iPhone, and make it a lot more attractive to instead spend $300 on a cool accessory that gives them ?Pay among other nifty features. I wonder if the mobile phone carriers will start carrying any models of the watch in store, to encourage that kind of purchase?
Problem with the gold watch is that because we know it costs hugely more than it's worth in gold, it makes you start to question the value of everything else they sell.
It's sad; Apple has become a little more cynical and hard-headed. I miss the days when it strove—and succeeded— to give us all Ferraris for the price of Volkswagens. Now, it feels like they've given up.
Apple has become a little more cynical and hard-headed. I miss the days when it strove—and succeeded— to give us all Ferraris for the price of Volkswagens. Now, it feels like they've given up.
I don't recall Apple ever selling that kind of product. I've been buying Macs since 1985, and I've alwas paid well above the market average for Apple hardware. It was anything but the Volkswagen of computers. If anything, it's more like the Mercedes of products, well made, well designed, and predictably reliable, sold at a premium price reflective of quality of its value against other products offered in the marketplace, with an exceptionally long lifespan. I didn't buy my first new Mac until 2000, because I couldn't afford one, I always bought used equipment until that point, not because I couldn't afford it necessarily, but because I couldn't justify the expenditure against my other expenses in those days.
Problem with the gold watch is that because we know it costs hugely more than it's worth in gold, it makes you start to question the value of everything else they sell.
You don't get out much. The fault that you find in the ?Watch Edition is easy to find in any premium watch. The Roger Dubuis Excaliber Skeleton Double Flying Tourbillon RDDBEX0395 will hit you for £235,500. This is somewhat north of your average Rolls Royce or Bentley. Do you believe that the Roger Dubuis watch has anywhere near the material needed to justify its premium over the super luxury sedan?
We don't have to go to precious metals. Take a look at your a stainless steel premium watch. Do you believe that they contain enough stainless steel to justify their prices?
It's sad; Apple has become a little more cynical and hard-headed. I miss the days when it strove—and succeeded— to give us all Ferraris for the price of Volkswagens. Now, it feels like they've given up.
Just because you remember things that way doesn't mean that is how they happened. Apple was never in the business of selling premium products at bargain basement prices. To the contrary, Apple was noted for two things:
You got what you paid for. Apple products cost a bit more than you would expect to pay for computers that you bought from a neighbor who assembled them from parts out of Computer Shopper magazine. However, your system and its components were and are the best of any name-brand manufacturer.
Apple products "just worked." After you unboxed your new system, connected its components, and logged onto your new Mac, you could count on years of trouble-free service. Any minor issue that required your attention could be handled by you rather than some nerd who devoted all of his time to computers.
This begs the important question: What color is the sky on your planet?
Problem with the gold watch is that because we know it costs hugely more than it's worth in gold, it makes you start to question the value of everything else they sell.
You don't get out much. The fault that you find in the ?Watch Edition is easy to find in any premium watch. The Roger Dubuis Excaliber Skeleton Double Flying Tourbillon RDDBEX0395 will hit you for £235,500. This is somewhat north of your average Rolls Royce or Bentley. Do you believe that the Roger Dubuis watch has anywhere near the material needed to justify its premium over the super luxury sedan?
We don't have to go to precious metals. Take a look at your a stainless steel premium watch. Do you believe that they contain enough stainless steel to justify their prices?
It's sad; Apple has become a little more cynical and hard-headed. I miss the days when it strove—and succeeded— to give us all Ferraris for the price of Volkswagens. Now, it feels like they've given up.
Just because you remember things that way doesn't mean that is how they happened. Apple was never in the business of selling premium products at bargain basement prices. To the contrary, Apple was noted for two things:
You got what you paid for. Apple products cost a bit more than you would expect to pay for computers that you bought from a neighbor who assembled them from parts out of Computer Shopper magazine. However, your system and its components were and are the best of any name-brand manufacturer.
Apple products "just worked." After you unboxed your new system, connected its components, and logged onto your new Mac, you could count on years of trouble-free service. Any minor issue that required your attention could be handled by you rather than some nerd who devoted all of his time to computers.
This begs the important question: What color is the sky on your planet?
Blue or white, depending on your perception of colour.
Comments
That's how business works.
It isn't the materials alone of the Apple Watch Sport model that is making it $350 - the entry level is priced that way as Apple believes the product is worth that - its value to the user is worth that.
Right, just like the Edition has nowhere near enough gold in it to justify the $17,000 price tag. Especially since Apple has patented the process which allows them to make an 18K gold watch "with as little gold as possible". There's a lot of intangibles in these watches.
However, I do think that Apple is looking down the road as to how they can expand the user base to get the watch into as many hands as possible, including those for whom $349 is otherwise a barrier (as long as they don't sacrifice their margins in the process). I'd look for this year's Sport Watch to cost $299 this time next year when the new models come out, especially since the 5S will be their free iPhone, and make it a lot more attractive to instead spend $300 on a cool accessory that gives them ?Pay among other nifty features. I wonder if the mobile phone carriers will start carrying any models of the watch in store, to encourage that kind of purchase?
Problem with the gold watch is that because we know it costs hugely more than it's worth in gold, it makes you start to question the value of everything else they sell.
It's sad; Apple has become a little more cynical and hard-headed. I miss the days when it strove—and succeeded— to give us all Ferraris for the price of Volkswagens. Now, it feels like they've given up.
We don't have to go to precious metals. Take a look at your a stainless steel premium watch. Do you believe that they contain enough stainless steel to justify their prices?
Just because you remember things that way doesn't mean that is how they happened. Apple was never in the business of selling premium products at bargain basement prices. To the contrary, Apple was noted for two things:
This begs the important question: What color is the sky on your planet?
Blue or white, depending on your perception of colour.