“I think the pricing for the steel Apple Watch collection is what’s going to raise a ruckus, because there are a lot of people who want one and expect that they’ll only have to pay $500 or $600, regardless of their strap preference,” John Gruber writes for Daring Fireball.
“At the introduction event in September, Tim Cook explicitly billed Apple Watch as the next flagship product line in the company’s history: Apple II, Macintosh, iPod, iPhone, iPad, and now the watch,” Gruber writes. “There will be no brushing it off as a mere ‘hobby’ if it isn’t successful.”
“The thing is, for all the griping about the prices that I expect come Monday, at $349, Apple Watch has the lowest entry-level price for any first-generation flagship product from Apple,” Gruber writes. “The first iPod cost $399. The iPhone was $499. iPad was $499.”
Much, much more about Apple Watch — from the S1 internals to prices for straps — in the full article here.
MacDailyNews Take: As we wrote on Friday:
Watching the reactions of Joe Six Pack consumer electronics buyers to the price of the top-of-the-line Apple Watch Edition is going to be interesting, but witnessing the slack-jawed expressions quickly morph into red-faced fits of sputtering rage and resentment from the great unwashed BOGO Android settlers is going to be absolutely delectable!
MacDailyNews Note: Apple will webcast March 9th ‘Spring Forward’ special event live on Apple TV and via its website (apple.com/live). As always, MacDailyNews will cover the event with live notes, so you read our reactions and comment on the proceedings as you watch Apple’s live webcast. Check our home page for the coverage link on Monday morning.
Here are Gruber’s final guesses (38mm/42mm):
Apple Watch Sport (all colors): $349/399
Apple Watch, steel, Sport Band: $749/799
Apple Watch, steel, Classic Buckle: $849/899
Apple Watch, steel, Milanese Loop: $949/999
Apple Watch, steel, Modern Buckle (38mm only): $1199
Apple Watch, steel, Leather Loop (42mm only): $1299
Apple Watch, steel, Link Bracelet: $1499/1599
Apple Watch, space black steel, Link Bracelet: $1899/1999
Apple Watch Edition, Sport Band: $7499/7999
Apple Watch Edition, Modern Buckle (38mm only): $9999
Apple Watch Edition, Classic Buckle (42mm only): $10,999
Let the rage begin! 🙂
I doubt the WATCH will cost twice as much as the WATCH SPORT. I don’t believe these price guesses.
Too high. (Gruber and the prices.)
Sport Aluminum: $349 ($49 for rubber bands)
Watch Steel: $599 ($79-$149 leather bands)
Edition Gold: $2499 ($1299-$2499 metal bands, $4999 gold band)
(Same price for either size.)
What if Apple sells the Watch existing to jewelry stores?
First let me say that I hope you are right in that I plan to get a gold one (I gave your comment 5 stars). However, I can’t see any reason why Apple wouldn’t take advantage of the existing distribution channel represented by jewelry stores. If that does happen, then the Gruber prices make a lot of sense as there would be a reasonable markup for those jewelry stores.
Jewelry stores are the best venue for buying a watch. By letting jewelry stores sell the Watch you avoid creating a material amount of competition with them. Some jewelry buyers have a good relationship with a jeweler and this would be a great way for first time Apple product buyers to get introduced to Apple products. But the main reason is that Apple can take advantage of a tremendous distribution alternative and potentially move a boat load of watches.
Just saying.
I beard Beat Buy gets 3% of the sales in Apple products. I don’t think Apple will give jewelry stores much more. Which wouldn’t over well, needless to say.
I agree with you 100%.
You are right – Apple would have to offer a much greater discount to jewelry stores for the Watch than they have done with Best Buy for their electronics products. But this is jewelry, not just electronics, and that is why they would charge the prices like Gruber is suggesting. Historically gold watches in jewelry stores cost much more that the stainless products of the same design. My two Rolex stainless steel Daytona watches cost about $12,000 each, but my gold Daytona costs over $30,000. The movements are the same, the gold in the gold model is probably no more than $3,000 and yet the gold model commands and gets a much higher markup.
Obviously the processor and battery will be the same for all Watches. The starting price for the Watch is $349. The amount of gold in the Edition series will be $2,000 or less – probably much less. The gold in my Rolex President is about $2,000 and that includes the gold band. Therefore, if the price of the Edition series is around $10,000, Apple could give the jewelry store a discount commensurate with what they are used to (i.e. much higher than they give to Best Buy) and still have a high margin.
Like I said before this would open up a huge distribution channel to where Apple could sell a boat load of watches without breathing hard.
Again, just saying. 🙂
If the amount of 18K gold had been 30grams, it would have been worth around $1000 for gold value alone. However, Apple has just applied for a patent for a new 18K gold that weighs only 55% or so and is twice as hard as normal 18K gold. They do this by not alloying the pure gold with metals but with ceramic dust or with other fine powdered materials such as garnet, silicon carbide (Moissanite), or even diamond dust. This new form of Gold alloyed with other materials can give Gold new properties such as hardness and lightness, as well as differing color tones. Most important is the ability to CUT PRICE, since Gold is the most expensive component of the alloy. Instead of having $1000 worth of gold in the watch, there will be only 12 grams of casing of which only 7 grams is actually Gold. That price would only be around $400. BIG SAVINGS in cost. The price of the AppleWatch Edition may be very surprising!
I heard Best Buy gets 3% of the sales of Apple devices. I’d be surprised if Apple was willing to give jewelers much more.
Interesting idea but I don’t think the jewelry stores could handle all those buyers in long lines around the blocks!
“Interesting idea but I don’t think the jewelry stores could handle all those buyers in long lines around the blocks!”
As a long time buyer of jewelry and having a long term in depth relationship with various jewelers I can tell you, without a doubt, that they would welcome the business. Jewelers, just like everyone else (and maybe more so), love to make money.
Basically your point beautifully gives support to my suggestion. Apple stores are really not structured to sell watches as well as jewelry stores. This would give Apple an alternative distribution model that would sell a boat load of watches. It would augment their own distribution channels in a wonderful way.
IMO Apple would have to give up too much margin for Jewelry store sales. They want to be able to do 100% mark up. In the intia push, I woul think Apple would want to keep as much margin as possible in house. We do’t know pre inventory or build rate/ramp yet. I would suspect that they want to be conservative and not have to dump inventory, if sales are slow. Also, want to keep the perception of scarcity to induce demand.
We’ll know tomorrow.
This is what I was talking about:
“Apple Watch will also be available to preview or try on at Galeries Lafayette in Paris, Isetan in Tokyo and Selfridges in London on April 10. Apple Watch will be for sale on April 24 at these select department store shop-in-shops, and at boutiques in major cities across the world including colette in Paris, Dover Street Market in London and Tokyo, Maxfield in Los Angeles and The Corner in Berlin.”
I think you’re very low on the Edition guess.
Why in the hell couldn’t have you been right? I was counting on you. Now I have to go sell my first born for a stupid watch. 🙂
Apple Watch Edition pricing:
• 38mm 18-Karat Rose Gold w/ White Sport Band – $10,000
• 42mm 18-Karat Rose Gold w/ White Sport Band – $12,000
• 38mm 18-Karat Yellow Gold w/ Black Sport Band – $10,000
• 42mm 18-Karat Yellow Gold w/ Black Sport Band – $12,000
• 42mm 18-Karat Yellow Gold w/ Midnight Blue Classic Buckle – $15,000
• 38mm 18-Karat Rose Gold w/ Rose Gray Modern Buckle – $17,000
Gruber’s price estimates for the Apple Watch bands seem way out of whack. Apple Watches and associated watch bands are going to sell in the millions. There is a principle called ‘economy of scale’ that will provide Apple significant advantages over all other premium watches, smart or not. I saw a unit sales estimate for Rolex a few days ago of 675,000 units per year combined for all models (but I cannot vouch for the veracity of that number). If true, Apple will sell at least that many per month and, possibly, double that amount – twelve to twenty-four times the volume of Rolex. That, along with Apple’s famous volume supplier contracts, means significant component cost savings. Even with Apple’s traditional 40% gross margin (which is not that high compared with most luxury items), the prices for the Apple watches and watch bands will be higher than everyone would like, but not crazy like some of the estimates that we have seen.
For the steel Apple Watch, I doubt that any band option will add more than $200 or so. If you accept Gurber’s base prices of $749/$799, then my guess is that the maximum will be $949/$999 with the premium band option. I cannot believe that the link bracelet will double the price of the steel Apple Watch, as Gruber’s speculates.
I believe that the space black steel Apple Watch will command a price premium, but I do not expect that premium to be more than $100. Apple keeps a tight supply chain and will rapidly adjust production to match consumer demand.
I don’t know what to think about the gold version. I don’t know how much the watch, itself, will cost, but I can certainly believe that a gold watch band will add a hefty delta to the price. Not only will the gold content can’t really see people attaching a plastic sports band to it.
In my opinion, the majority of people who are
I accidentally hit ‘post’ too early… Completing the last two paragraphs:
…but I can certainly believe that a gold watch band will add a hefty delta to the price. Not only will the gold content increase the price, but there will be far fewer units produced. I cannot envision many people attaching a sports band to the gold Edition, but some people do go out of their way to be different.
As far as Gruber’s expectations of ‘people raising a ruckus’ about the prices on the steel version of the Apple Watch, I doubt that will happen. Most people will be aiming for the aluminum Sport version, anyway, to save a few hundred dollars and reduce their level of worry over theft, loss, or damage, or guilt over updating to the next version of the Apple Watch.
Chill out Gruber. You will find out how wrong you are soon enough. So will a lot of other people. I might very well be one of them, but I don’t make a living pretending to be an expert on commercial technology.
The Apple Watch is so novel that even John Gruber exposes a conservatism of thought, when making predictions about it. I won’t flog him for it now since the next few days will settle everyone’s spinach. Historically, the only outcries about Apple’s pricing I can recall were analyst predictions that quickly faded.
Sorry, Gruber, I let myself get too enthralled with my own writing with that last sentence. You are one of the better tech writers out there when it comes to Apple. But some of your prices just don’t make sense.
Using the 42mm version of the steel Apple Watch, as an example, the price estimate with the Sport band is $799. An additional $100 for the “Classic Buckle” is possible, even $200 for the Milanese loop. But an additional $400 for the Modern Buckle, $500 for the Leather Loop, and
$800 for the Link Bracelet (which doubles the base price) just seems out of whack. Apple wants people to buy multiple watch bands to customize their look, and those prices are nuts.
Gruber provides a basis for his high cost estimate for the Link Bracelet. I still don’t buy it, but he does provide rationale. As far as the rest of the bands go, I would be surprised if any of the bands for the aluminum or steel watches are more than $200 or so.
The gold bands, of course, will cost more.
Overall, my guesses were better than Gruber’s. Except for the Link bracelet, all of the band options for the SS version of the Apple Watch are $200 or less relative to the Sport band. The Buckle, Milanese, and Leather Loop (42mm only) are $100 extra. The Black Modern (38mm only) is $200 extra. The link is $400 extra. That is on top of the fact that the base SS Apple Watch is $549/$599, which is $200 less than Gruber’s estimate. His estimate for the Space Black version with the Link bracelet was about $850 too high.
Gruber hit the gold Edition version pricing pretty squarely at $10,000. I expected a starting price about one-half of that.
I don’t think there will be a smaller price for the small watch. (or bigger price for the bigger watch) Unless Apple is leaving out features for the smaller Apple Watch, (I don’t think that is the case) the smaller should cost more to build.
Miniaturization cost money. Building big and bulky stuff is easier, it’s harder to cram all that stuff in a smaller package.
I think the innards will be the same. They showed the encased computer part that goes into them, so all the “cramming” has been done. The larger one will have more pixels on the screen, though, so may well cost more. And the gold one will have more gold in it, obviously.
Yesterday I posted my price predicrion for Apple Watch Edition Gold: $2,499 or less.
Gruber’s pricing is BS. Too expensive. If Apple makes these too expensive they will not sell well. Make no mistake. This is an accessory to the iPhone, not a standalone product. The market segment is already reduced out of the gate to those who own an iPhone. And while there are lots if these folks, only a portion of them will buy this thing. Thus, there’s limits out of the gate on Apple Watch’s market potential. The pricing needs to be aggressive. People will raise an eyebrow over a watch that costs more than their iPhone, MacBook Pro, etc.
I don’t think there will be a difference in price, based on Apple Watch size, except for the gold Edition version.
Except (maybe) for the Sport version, I don’t think the pricing uses the “99” scheme. No one who buys a $10,000 watch cares that the price is $9999 versus $10,000. In fact, they’d want the price to be $10,000.
Apple surprises at the low end, by making the price $300 (or $299). Or, it may be Apple Watch Sport for $300, bands starting at $49 (for the Sport Band). This also makes it easier to stock the highest volume version, with watch and band NOT in the same box. The purpose of this model is to encourage adoption (sell as many as possible as quickly as possible), and hitting a key price point (like $499 for first iPad) is important.
Gruber’s pricing for the stainless steel version is a bit too much. However, I agree that the metallic bands will cost more than expected. Apple Watch with Milanese Loop or Link Bracelet, $1000. As low as $600 with other bands. These are sold with watch and band in the same box.
It’s interesting that the gold model can come with the same synthetic “Sport Band” as the low-end model. I think this means Apple is encouraging third-party bands, from inexpensive to VERY expensive. The gold Apple Watch with Sport Band is for customers who want to buy an ultra-exclusive band. Apple may offer one such option, a band that is gold, different in design from the steel link bracelet (to use a less metal). With that band, the most exclusive Apple Watch is $10,000. Other band options put the gold Edition Apple Watch much lower, perhaps around $4000 or $5000 for the one with Sport Band.
No way will going to the leather band be an extra $400.
Look at the price difference for the leather iPad cover.
Apple has not revealed that the watch bands cannot be easily replaced with knock-offs. The so called ‘data pins’ hidden in the band connection actually are to provide a link for the watchband identifier chip to allow the watch to work.
The secret decoder is in the bands!
Gruber doesn’t have anything to say about function. Funtionality and usability is what will count with users. Potential Apple Watch buyers on MDN and elsewhere want to understand what it will do for them.
Gruber, with nothing else to say, has to drag out FUD about price as he has nothing else to put in the empty space in his column.
Uhh… do you know who John Gruber is? He is the last person who would ever write or spread FUD about anything Apple. If anything, he would be the one trying to defend them. And I think that’s what he’s doing here – trying to prepare people for prices higher than they’re expecting so they don’t freak out. They may not be as high as he thinks, but they will be higher than most will like.
If I’ve falsely accused John of something wrong, I apologize.
But the constant speculation is endless and really serves no valid purpose for a consumer. It really is not news.
It is not like we can go out and put in an order right now.
“It really is not news.”
Which is why MacDailyNews has it in their “Opinion” section.
I don’t understand how the pricing is going to raise a ruck ASS. The whole idea of multiple watch lines makes it both affordable and aspirational for all income levels among all people of the world. Phil Schiller is a marketing genius who will have the different WATCH and bands pricing rationalizations perfectly matched to their target markets. Frankly I don’t get the appeal of the heavier models. For me the lighter weight of WATCH SPORT trumps price but in this case just also happens to be the least expensive model. 💥😃
I feel like you do about the bulky watch. I have a Movado Museum watch from over 22 years ago. It is thin, sleek and elegant. I used to wear it all the time, but now mostly special occasions.
The crystal is sapphire and after 22 years is still pristine.
No matter how Apple prices Apple Watch, ruckuses will be raised.
We know this.
Agreed. But this is good for Apple. The ruckuses will create “controversy”, controversy will create “news” and news will get the Watch “noticed”.
IMHO: In addition, much of the FUD will prove to be flat wrong as usual with other Apple product announcements. This is also good for Apple. Being essentially a salesman throughout my life, I have been of the opinion that the hardest person to sell is someone that does not have an objection.
My biggest hope is that Cook and company will announce that you will be able to upgrade the internals of the watch when a new processor (it is one piece) and battery are available. If you study the design of the watch, you may ascertain that there is no reason to change the design. Many fine watches, like the Rolex President or Daytona, have had little or no changes since they were introduced. If Apple does let us upgrade our Watches, it would kill the notion that one would be crazy to spend a lot of money on a device that will be obsolete in one year. It would also be environmentally friendly, something Apple is big on. Just saying.
Exactly.
I’ll be getting the Sports watch in 42mm and probably with a black strap. I haven’t decided if I want the silver or black body.
Later I will get a better strap once all the ruckus dies down and I will be able to try them on in a store.
NO need to post this…..just fyi
MDN……..so you red our reaction
…….so you READ our reaction……..
I noticed on the mockup price list that Gruber linked that some of the bands would not be available for sale separately.
That would be very disappointing since one of the key points Apple made was the ability to change out straps depending on mood or circumstance.
It also makes no sense financially. If I get the Sports Watch for ~$400 and then also buy a higher end strap for $200-300 then Apple have got an additional 50-75% more money from me.
I can understand that initially sales for straps will be limited since inventory will be constrained at the start. But to limit strap sales afterwards to those who bought the appropriate watch does not make good sense to me.
We shall all see on Monday.
As has been the norm, the higher end price guessing is TOO high. Let’s wait and see what’s real…
Wait until what’s real. Are you seriously suggesting that jouranalists and analist start using facts?
Sounds like a threat to modern day jouranalism.
Gee forget about think different, just getting jouranalist to think.
I’d back that.
Of course, we have fun poking TechTard journalists in the eye from afar, and ever shall? But, setting aside the fun, what this is worth is reminding ourselves how rare and beautiful is honesty and integrity. It is one of the many fine goals of writing.
Apple will delight us again.
Apple will not charge the super high markups that watch/jewelry makers get away with. The issue of no additional markup from the Apple Store will also not skew the price upward. We are in for a nice surprise Monday.
I love the look at the space black steel, but if it is 1899, I would rather have an iMac. No way in hell are they going to be that expensive. If they are, not many will buy. Wait and see.
Does anybody know the weight of the case for the gold edition? Gols is going for $1,168 per troy ounce. or about $37.00 troy Gram. There are 12 troy ounces per troy pound. So one troy pind of gold would cost about $14,000.00. Which is $3,000 less if gold were measured using avdp, or known as pounds and ounces or the english system o weights. Since I don’t know the weight of the case I will assume the gold content to be 1 troy oz, which means the price for the case alone would be $1,169 for one troy ounce.
I just hope that when TC announces the pricing I’m not hearing the Chinese translation overdubbing !
Such a ruckus here about from what I’ve read, watch bands! Can’t wait to see what actually is announced on Monday. But my favorite comment here so far was about the “data pins’ hidden in the band”, and the “secret decoder is in the bands”.
I’ve heard of the data pins in the band, on the watch, but never heard or thought of the decoder in the bands, but when you stop and think of it, the battery band I read of that will double battery life makes sence now (from a 3rd party), and apple would do something like this to slow down all the 3rd party accessories so they can rape the consumer on prices of bands, even if it’s for future use, they can say it’s diagnostics and then steal 3rd party ideas on how to use the port instead of just licensing those 3rd party accessories. Jobs said it himself, Apple steal great ideas, companies that aren’t great, borrow ideas, or something along those lines. Bottom line, I watched the jobs interview this weekend where he admitted Apple STEALS great ideas that are not capitalized on, so why would apple stop stealing now that the only person who could have kept them relevant, is gone. And yeah, all this awesome apple ness and products right now, have Jobs hand on it, everyone with a brain knows companies like this have future products in the works literally years before they come out. Keep trying to take the credit cook, but we all know why Apple software is your regular everyday shit, just like everyone else’s now.
The interview was from if I remember correctly, 1995, and its on US Netflix now, for all you blind, narrow minded, naysayer followers of the past who do not live in the now…how’s your Newton?
Could be.
Wouldn’t be surprised.
Watch Edition isn’t priced for the masses.
People shouldn’t take offense in the fact that they can’t afford one.
I can’t either (well, I could, but I can’t justify paying so much for a watch).
Once upon a time the electronics & technology world was a competitive field where performance was important and prices reflected ability. Apple’s choice today to 1) release a neutered netbook and 2) merge fashion watches with electronics at prices that go from premium to completely absurd for what is inevitably a limited-life non-heirloom product is sad. Apple isn’t even attempting to outcompete Mac competitors in terms of value or performance, it’s convinced that only the thickness of the product matters. As for the Watch, big deal. There will be an initial surge as all the fanboys rush in. Every doctor will have one and will tell all their patients that they should have one too. Ahrendts will have a closet full of Edition ones because she can afford it given the insane signing bonus that Timmy gave her.
Meanwhile Mac-using professionals stand by for another year waiting for Apple to offer them anything, any sign of hope whatsoever that Apple is even listening to their needs.
We are waiting Apple, and I for one am keeping track of time with a MacBook Pro , not with an overpriced wrist accessory.
announced prices from March 9 presentation:
Apple Watch Sport, aluminum 38mm: $349
Apple Watch Sport, aluminum 42mm: $399
Apple Watch, stainless steel 38mm: $549 – $1049
Apple Watch, stainless steel 42mm: $599 – $1099
Apple Watch Edition, 18K “solid gold”: $10,000 and up
Thanks but no thanks Apple. I can take the trouble to pull out an iPhone for that price. And no, i don’t need a medical bracelet yet.
And all the “Gruber is high” posters? *Crickets*
Gruber had some inside info, his estimates were almost all right on!
He said repeatedly, flat-out, that he didn’t. That his prices were his own speculation. He wouldn’t risk his reputation for such a silly lie.