“We are starting to get early reads on how Apple Watch pre-order mix is trending and there are a number of surprises. It is obvious why Apple will not disclose Apple Watch revenue data. By knowing which Watch collections are selling and at what price, it would be easier for competitors to reach conclusions on customer preferences,” Neil Cybart writes for Above Avalon. “Using early pre-orders reports and a few long-standing theories, the Apple Watch will likely be loosely guided by the premise behind the 80-20 rule, where approximately 80% of Apple Watch profits will come from 20% of Apple Watch customers. In essence, the Apple Watch and Edition collections will likely account for a small portion of sales, yet play a much bigger role in terms of Apple Watch profit. The implications are significant when contemplating how management will treat the Apple Watch line in subsequent years.”
“Apple will likely dedicate significant attention and resources to updating higher-end Apple Watch models and bands,” Cybart writes. “Rumors had indicated a platinum option priced higher than the current gold Edition models. Karl Lagerfeld’s custom Apple Watch with gold link bracelet will likely be available one day for more than $50,000. Marc Newson’s schooling and experience with jewelry design will likely play a major role in this effort. Apple is now a premium mass market luxury brand.”
Read more in the full article here.
MacDailyNews Take: Apple Watch Edition is the world’s first luxwearable.
We can thank Apple Watch Edition buyers for helping to keep the prices low for Apple Watch and Apple Watch Sport. — MacDailyNews, March 31, 2015
For purchasing the world’s first luxwearable… exclusive treatment for Apple Watch Edition customers is to be expected. Something would be wrong if Apple wasn’t offering it. — MacDailyNews, March 30, 2015
The $17,000 Apple Watch Edition vastly separates Apple Watch from the stupidwatches. Editions are mobile billboards and perpetual interest-generators for Apple Watch and Apple Watch Sport that also elevate the perception of quality for both of those models. — MacDailyNews Take, March 27, 2015