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How much do you think the Sport band costs Apple to produce?

I can see there are quite a few people here who feel no compunction about posting even though they obviously are not familiar with the subject. Viton or similar flouroelastomer is not ordinary rubber.

My company makes a similar item, which I designed and engineered. Cost in the volumes Apple is doing would be around $2.80 packaged, FOB China. But anyone involved in manufacturing understands that's not the sole basis for the price.
 
Shinigami301 said:
I can see there are quite a few people here who feel no compunction about posting even though they obviously are not familiar with the subject. Viton or similar flouroelastomer is not ordinary rubber.

My company makes a similar item, which I designed and engineered. Cost in the volumes Apple is doing would be around $2.80 packaged, FOB China. But anyone involved in manufacturing understands that's not the sole basis for the price.
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That's in line with what most of us are predicting. So much for not knowing what we're talking about. Call it fancy rubber but it's still a couple dollars a pop.
 
Marc was just a guy at Ikepod. Maybe he had rights to the IP, but likely he did not. If Ikepod originated the design, then it is theirs, not Marks. Apple copied Ikepod; but Apple also hired Marc to consult on design, and Marc probably said they should copy the Ikepod band design.
 
exxxviii said:
Apple copied the band from an old Ikepod design (mark Newson's work then). It is not an original design.
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If a producer hires a film director and the resulting work uses many of the director's trademarks/directing style, would you say the movie copied the director?

Newson was hired by Apple to work on the Watch so Apple's Sport band, Milanese loop, Leather loop and Link Bracelet are Newson's own work.
 
It is not a stylistic similarity; the sport watch band is a straight copy of the Ikepod band.

My original post was in response to preceding posts about the potential costs for R&D, fastening system, design, marketing, etc. By copying the Ikepod band and bringing in Newson to consult, Apple could fast-path through a lot of the design and marketing costs, like consumer research, materials & characteristics, pin diameter and length, shape of the band, spacing of the holes, etc.
 
Jefe's MacAir said:
Pure materials and manufacturing? Less than a $1 based on Apples HUGE scale of production.

Proprietary fastening system, design, marketing, etc. It's likely they're losing money at $50/band currently. That will flip flop very soon and actual profits will be made. For many, many years.

Question is; How much will Apple charge others to use their fastening system for off brand bands?
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https://forums.macrumors.com/thread...ts-band-may-have-base-cost-of-just-2.1893279/
MacRumors said:




Article Link: Apple Watch U.S. Sales Estimated at 2.8 Million, Sports Band May Have Base Cost of Just $2
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A little off topic but I was shocked at the packaging when I received my extra black leather loop. The box that Apple packages it in has to cost as much as the band!

Apple must make a profit.
 
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ok, even more off topic, but do you think the bands will work on the next apple watch? either 2 or 3 when ever they come out? My guess is yes on 2, but no on 3 for some reason.
 
I got my batch of $5 clone sport bands. The quality is excellent and they are virtually indistinguishable from the Authentic Apple sport bands. I am hard-pressed to believe that the direct cost to manufacture is more than $1 for the Apple bands.
 
It cost them a Lincoln

fivedollarbill.jpg
 
Did someone mention R&D costs being a significant part of the costs of producing the sports band? Seriously?
 
exxxviii said:
I got my batch of $5 clone sport bands. The quality is excellent and they are virtually indistinguishable from the Authentic Apple sport bands. I am hard-pressed to believe that the direct cost to manufacture is more than $1 for the Apple bands.
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Let's see how they hold up over time.
 
Rogifan said:
Let's see how they hold up over time.
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That's the plan. They will be subjected to a pretty hostile life.

I cannot imagine that I will ever buy another Apple band. The clones are simply too good for a fraction of the cost. In a couple days I will have a couple knock-off leather loop bands for 1/5 the Apple price. And I have a gray link bracelet clone coming from Singapore for 1/4 the Apple cost.
 
Newtons Apple said:
A little off topic but I was shocked at the packaging when I received my extra black leather loop. The box that Apple packages it in has to cost as much as the band!

Apple must make a profit.
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Yeah, the packaging is grossly excessive. I know that's expected in the watch business, but I really don't expect it from Apple.

I'll bet there was a lot of internal fighting over the packaging.
 
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exxxviii said:
That's the plan. They will be subjected to a pretty hostile life.

I cannot imagine that I will ever buy another Apple band. The clones are simply too good for a fraction of the cost. In a couple days I will have a couple knock-off leather loop bands for 1/5 the Apple price. And I have a gray link bracelet clone coming from Singapore for 1/4 the Apple cost.
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I'm sure they'll be almost exactly like the actual apple bands. In fact, I wouldn't be surprised if they ARE the exact Apple bands. These things are not tough to manufacture. Like someone else said, they're $50 because Apple can charge $50. THere's nothing else to it. The profit margins are humongous for the sport band. That's why they can afford to put TWO straps in every box.
 
I can't believe this thread is still going. But anyway, seems we're all settled on a few dollars per band based on the quantity Apple must be producing these at? Let's be super generous and say that allocated R&D, labor, shipping, and packaging bring each of these to $10.

Are 80% profit margins common in any industry? It seems excessive to me. I understand companies not only need to recoup costs but they also need a profit to make it worthwhile. Let's say Apple sold a Sports band for $25. Are we asking too much for Apple to make a 60% profit margin on their bands? This is plainly excessive to me and does a disservice to the product by making watch customization prohibitively expensive.
 
youradhere4222 said:
I can't believe this thread is still going. But anyway, seems we're all settled on a few dollars per band based on the quantity Apple must be producing these at? Let's be super generous and say that allocated R&D, labor, shipping, and packaging bring each of these to $10.

Are 80% profit margins common in any industry? It seems excessive to me. I understand companies not only need to recoup costs but they also need a profit to make it worthwhile. Let's say Apple sold a Sports band for $25. Are we asking too much for Apple to make a 60% profit margin on their bands? This is plainly excessive to me and does a disservice to the product by making watch customization prohibitively expensive.
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Just buy third party bands such as MoKo bands from Amazon. Look in accessories thread.
 
doboy said:
Just buy third party bands such as MoKo bands from Amazon. Look in accessories thread.
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A profit margin can't be 100%. If that were the case then the band and all associated costs would be 0.

You're probably thinking of markup, and from what I can tell jewelry's markup is around 100%. The band markup is probably north of 400% based on the generous cost estimates in this thread.
 
andrewstirling said:
It probably costs them about the same as the ikepod straps cost to make. They look identical and the same designer designed them both. They're currently selling for around £300
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You could argue rather than $50 being expensive, Apple brought the price down from £300 to something more accessible to the masses.
 
youradhere4222 said:
I can't believe this thread is still going. But anyway, seems we're all settled on a few dollars per band based on the quantity Apple must be producing these at? Let's be super generous and say that allocated R&D, labor, shipping, and packaging bring each of these to $10.

Are 80% profit margins common in any industry? It seems excessive to me. I understand companies not only need to recoup costs but they also need a profit to make it worthwhile. Let's say Apple sold a Sports band for $25. Are we asking too much for Apple to make a 60% profit margin on their bands? This is plainly excessive to me and does a disservice to the product by making watch customization prohibitively expensive.
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Go look at Apple's financials via their SEC filings. No where has Apple ever shown an 80% profit margin. I think in the last quarter their profit margin was around 23% and gross margin around 39%. Of course they don't break out margins by product but if their overall profit margin is 23% I have a hard time believing an Watch sport band is 80%.
 
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