Taking a step back from the tech industry, Gruber looked at the upper tier of the fashion accessory market and decided to revisit his early fall guess that the lowest price the Apple Watch Edition could sell for would be $5,000. He began asking "friends who might know" whether they thought that estimate was too high.
The answer has always been “No”. But the way I’ve been told “No” has given me the uneasy feeling that I’ve been asking the wrong question. I should have been asking if $5,000 is too low.I now think Edition models will start around $10,000 — and, if my hunch is right about bands and bracelets, the upper range could go to $20,000. I was off by a factor of two, and my friend Vincent, I think, nailed it back on the day Apple Watch was introduced.
Due to Apple's decision to remain silent on many details of Apple Watch pricing structure so far, Gruber, like many others, assumed the interchangable bands shown off at last September's reveal event would be able to be purchased separately. Watch wearers could, in essence, dress up a Sport Edition with a Milanese Loop, or exchange a nice leather band of a higher-tier model with a Sport band. Gruber now notes, however, that this does not appear to be the case, with band options for each watch version being limited.
He points to a list of bands available for the mid-tier stainless steel Apple Watch model. As presented on Apple's site, the list starts with the Sport band and ends with the higher-quality Space Black Stainless Steel with Link Bracelets. Besides differences between each band's 38mm and 42mm sizes, Gruber argues this ordering is an indication of price from least to most expensive.
So I’m thinking the regular Apple Watch will come in at least five pricing tiers:1. Entry: Sport Band, black or white.
2. Regular leather: Classic Buckle, you’ll get it in black and you’ll like it.
3. Milanese Loop.
4. Deluxe leather: Modern Buckle for 38mm models, Leather Loop for 42mm models. Each with a choice of three colors.
5. Link Bracelet.You’ll pay a premium for color straps and advanced clasp mechanisms, and you’ll pay even more for the Link Bracelet.
He isn't sure the same ordering rules will apply to the expensive Apple Watch Edition, however, with a small list of six variations, he thinks their placement on the website "almost certainly does not correspond to price."
Gruber's full piece is well worth a read, as it offers a thorough analysis of the various band options and how they will likely pair up with the various watch collections. With three different watch collections, two casing sizes, and a number of different bands that will likely vary substantially in price, the Apple Watch appears set to be available at a wide range of price points starting at the base price of $349 and quickly ramping up from there.
News and rumors about the Apple Watch and all of its editions have been building since Tim Cook announced the device's launch window sometime in April. Most recently it was reported that Apple is allowing select third-party developers to visit the company's Cupertino headquarters to help them put the finishing touches on their various Apple Watch apps before the big launch. It remains unclear, however, just how long Apple will wait to announce full details on pricing and availability.
Have a trade-in program or upgrade program of some kind for this to fly.
Remember back when people were SWEARING up and down that the iPad would be $1200 to start? They ended up looking like total fools.
You people aren't reading the analysis. These are priced as fashion watches are. Disregard what tech is inside them. Millions of people spend that much every day on watches that only tell time and not even as reliably.
Millions of people do not buy high end watches every day that cost thousands.
But if you change that to millions of people PER YEAR buy expensive watches then you have a point. And your basic point is correct, there is a market for high end fashion and luxury and watches. If Apple can get into this market, then they've got something because the margins are insane.
I would still rather spend my money on a watch that is going to last forever. Not for months. Anything with three 0's behind it for an Apple Watch is crazy, but I am sure there will be people with more money than brains that will go for it.
I will always be more impressed by a Patek Phillipe or Cartier, hell even by a Rolex before some Golden Apple.
Actually some of those folks have a ton of brains, which has resulted in a ton of money.
Buying a $5,000 smartwatch doesn't make sense to me. But I have a bunch of friends with watches that cost $10,000 or more. Of course they expect to use them for a decade or more and then have resale value.
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