Apple Watch = no resale value after 2 years and once the battery dies... It cannot be

[aristobrat]

It won't be any different probably.
Many will not like the fact that their 5000 dollar watch is dead weight either due to battery being dead or because their hardware won't receive the latest OS update.

I'm with you regarding the OS updates, but with the battery, Apple's current service policy is below. If they keep an older version of the Apple Watch around when a new one is released, then they'll be servicing it (i.e. changing dead batteries) for at least 6 years. But on a $5K watch, a 6 year life span still seems questionable? Wonder if they'll change for that the Apple Watch?

Vintage and obsolete products

Owners of iPad, iPhone, iPod or Mac products may obtain service and parts from Apple or Apple service providers for 5 years after the product is discontinued (or longer where required by law).

http://support.apple.com/en-us/HT1752

 

[JayLenochiniMac]

The 5000 dollar gold apple watch is being sold as a luxury accessory so it unfortunately does compete with watches that are 10k plus.

A 5k item competing with a 10k+ item despite being two completely different products? That doesn't sound right. I'd also argue that the target audience is completely different. The Watch is more directed for someone like myself who haven't worn a watch in years thanks to the iPhone and no longer see any compelling reason to invest 10k+ on a watch.

 

[Julien]

People get so miss aligned thinking the Edition is the key to the aWatch. It's not. The Edition will probably make up less than 5% of aWatch sells. Still do the math. Apple could likely sell >50,000,000 from launch to fall/x-mass (gen 2??) 2016. If just a measly 2% were the Edition that would be 1,000,000 and at $5000 that is 5 billion dollars.

 

[Rlong405]

People get so miss aligned thinking the Edition is the key to the aWatch. It's not. The Edition will probably make up less than 5% of aWatch sells. Still do the math. Apple could likely sell >50,000,000 from launch to fall/x-mass (gen 2??) 2016. If just a measly 2% were the Edition that would be 1,000,000 and at $5000 that is 5 billion dollars.

Yes but that is turnover rather than profit. We obviously don't know what the margins are on the different watches but my understanding is that the edition is in part made from 24 karat gold. so costs will be higher and it is not just priced high for a massive margin plus the exclusivity factor for the customer.

 

[flyinmac]

Wouldn't this apply to every other wearable device on the market right now as well?
Unless you come up with a modular device (Like Project Ara, which brings it's own set of issues), any smart device is going to have a limited shelf life.

Except there are no $4000 fitbits.

 

[Julien]

Yes but that is turnover rather than profit. We obviously don't know what the margins are on the different watches but my understanding is that the edition is in part made from 24 karat gold. so costs will be higher and it is not just priced high for a massive margin plus the exclusivity factor for the customer.

The Edition is 18K and will have a HUGE profit margin (probably higher than any Apple product ever) as all high fashion items and jewelry do. I have guesstimated the case at about 20 grams but lets assume the 42mm weighs in at a full ounce (31.1 grams). Then the gold content would cost Apple at today's spot that would be about $860 cost

 

[SHNXX]

A 5k item competing with a 10k+ item despite being two completely different products? That doesn't sound right. I'd also argue that the target audience is completely different. The Watch is more directed for someone like myself who haven't worn a watch in years thanks to the iPhone and no longer see any compelling reason to invest 10k+ on a watch.

I think the 5000 dollar apple watch will compete with watches 10 times more expensive because unlike a normal expensive watch above 10k, the apple watch will become useless dead weight in about four years.
That's why I don't think it competes with a 5000 dollar watch that will work for the next fifty years and still look good.

 

[flyinmac]

I think the 5000 dollar apple watch will compete with watches 10 times more expensive because unlike a normal expensive watch above 10k, the apple watch will become useless dead weight in about four years.
That's why I don't think it competes with a 5000 dollar watch that will work for the next fifty years and still look good.

Yep, let's face it, the Apple watch will not be handed down to our great great grandchildren. It won't even be worth anything to our children in 2 years.

 

[robeddie]

Screencapped for some fun later. I'm surprised with this kind of intelligence you know Mac mini and Rolex.

Image

You do realize that while Apple has had some great product successes, they've also had some bad missteps, right?

I'm going to screen capture YOUR post for some fun later

 

[Julien]

You do realize that while Apple has had some great product successes, they've also had some bad missteps, right?

I'm going to screen capture YOUR post for some fun later

While there is no way to know it is almost a given it will sell well (I bet 50 million first year low end). Even if in the extremely unlikely event it fails to sell in large numbers in the US (or west in general) it all but certain it will be a HUGE success in markets like China. The Chinese are craving for Apple status symbol products (class status has always been culturally important). The aWatch will be perfect since it is on your arm all the time. Apple is in the process of expanding operations in China most of it's new stores are going there. Apple is a worldwide compony now and is no longer totally dependent on US sales for success.

 

[4583568]

Replaced because it's size. Kinda like the Mac mini problem. All glued in and the Apple watch is a expensive piece of crap that will sell poorly and one day battery. A Rolex will last beyond a lifetime and will always have a high resale.
Now.. If the Apple watch cost $100
It would be a great deal. It does not have enough features for something that cost MORE than an iPod touch.

Rolex. Resale. Never.

 

[matrix07]

You do realize that while Apple has had some great product successes, they've also had some bad missteps, right?

I'm going to screen capture YOUR post for some fun later

Be my guest. You'll find I rarely predict anything.

 

[SHNXX]

Apple Watch = no resale value after 2 years and once the battery dies... It c...

While there is no way to know it is almost a given it will sell well (I bet 50 million first year low end). Even if in the extremely unlikely event it fails to sell in large numbers in the US (or west in general) it all but certain it will be a HUGE success in markets like China. The Chinese are craving for Apple status symbol products (class status has always been culturally important). The aWatch will be perfect since it is on your arm all the time. Apple is in the process of expanding operations in China most of it's new stores are going there. Apple is a worldwide compony now and is no longer totally dependent on US sales for success.

Chinese will not think of the aWatch as a status symbol.
I'm in China. Nobody thinks a $350-$500 watch is a status symbol.
A $30000 Audemars Piguet or a gold Rolex Daytona, maybe.

$5000 gold version could be, I guess, but there won't be a lot of those around.

 

[matrix07]

Chinese will not think of the aWatch as a status symbol.
I'm in China. Nobody thinks a $350-$500 watch is a status symbol.
A $30000 Audemars Piguet or a gold Rolex Daytona, maybe.

$5000 gold version could be, I guess, but there won't be a lot of those around.

I think what he meant is a status symbol over Timex, G-Shock, Fitbit, Google Wear.. this kind of group. I could misunderstand him though.

 

[SHNXX]

I think what he meant is a status symbol over Timex, G-Shock, Fitbit, Google Wear.. this kind of group. I could misunderstand him though.

Yeah but that's a lousy status symbol, because the price range for watches runs from 0 (no watch) to over a million dollars, with high end classification starting around $10000.

This is not like phones, where except for Vertu, iPhones are relatively high end.