Why doesn't Apple Watch say where it was manufactured?

[Rogifan]

The Moto 360 doesn't have a CoO label visible. Also no one has actually looked at a production Watch (since there is no such thing as of now), so we can't be totally sure what is GOING to be on (or not on) the case. It is assumed that all Watches will be made in China but we can't be 100% sure of that either. Quanta Computer is the company that is responsible for final assembly and they have factories all over the world.

Don't forget that in the early 70's (and before) 'Made in Japan' was considered 'Cheap'. China is making the same pivot too to higher quality products. No one would say the iPhone is a 'cheaply' made device.


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No but iPhone also doesn't cost nearly as much as what we all assume the Edition Watch will cost. Maybe Apple will be able hide the CoO on the inside of the device. I still think Apple has a bomb or two it's going to drop when this device is actually released. One of them could be where it's assembled. Apple hasn't said anything so we're going off rumors at this point. The way Apple describes the bands on their website is unlike they've ever described a product before. Leathers from France; special machines from Italy etc. They don't really gell with mass produced in a Chinese factory.

 

[Piggie]

No but iPhone also doesn't cost nearly as much as what we all assume the Edition Watch will cost. Maybe Apple will be able hide the CoO on the inside of the device. I still think Apple has a bomb or two it's going to drop when this device is actually released. One of them could be where it's assembled. Apple hasn't said anything so we're going off rumors at this point. The way Apple describes the bands on their website is unlike they've ever described a product before. Leathers from France; special machines from Italy etc. They don't really gell with mass produced in a Chinese factory.

I know you all think I'm wrong, but I still feel, being a tech/gadget company Apple will get the ASS totally ripped out of them in the press if they place a GIANT sheer profit mark up on the edition watch.

Yes, we all know Apple needs to make a profit of course, as does any business, but there is profit, and there is sheer greed.

Let's say for one moment, Apple make $150 clear profit on the sports watch.
They then might make $200 clear profit on the Stainless Watch.

Do you really think the media will stomach, say $3500 clear profit on the edition model?

I'm speaking of course, after the bill of materials has been taken into account.

If there is, say $1000 - $1300 of actual gold, plus the same internals as the lowest model. I still feel this $5000 figure is way off the mark.

 

[KPOM]

I know you all think I'm wrong, but I still feel, being a tech/gadget company Apple will get the ASS totally ripped out of them in the press if they place a GIANT sheer profit mark up on the edition watch.

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Do you really think the media will stomach, say $3500 clear profit on the edition model?

I'm speaking of course, after the bill of materials has been taken into account.

If there is, say $1000 - $1300 of actual gold, plus the same internals as the lowest model. I still feel this $5000 figure is way off the mark.

The average markup on jewelry is huge. It's about 200-400% on gold. That's why the mall jewelers can run "50% off" sales all year round. The higher end stores like Tiffany don't publicly mark down, but the markups are still pretty significant. Since Apple sells predominantly through their own stores and online, and less through third parties, the retail price will be essentially the final selling price, so I would not be surprised if it is $5,000. Remember, gold-plated watches are advertised for around $3,000 at stores like Burberry. This actual 18t gold watch retails for $14,000. While it has some diamonds, and is a limited edition, it suggests that a $5,000 gold Apple Watch Edition would not be wildly overpriced at all.

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No but iPhone also doesn't cost nearly as much as what we all assume the Edition Watch will cost. Maybe Apple will be able hide the CoO on the inside of the device. I still think Apple has a bomb or two it's going to drop when this device is actually released. One of them could be where it's assembled. Apple hasn't said anything so we're going off rumors at this point. The way Apple describes the bands on their website is unlike they've ever described a product before. Leathers from France; special machines from Italy etc. They don't really gell with mass produced in a Chinese factory.

My guess is that the internals will be made in China, as will the elastopolymer (read "rubberized plastic") bands in the Sport model. The Edition may well be assembled elsewhere, such as the US, or even Switzerland (now that would be a "bombshell") and possibly also the stainless steel models if they want to get $1000 for them.

 

[stefvaughn]

Maybe the only thing worth noting is if it works as seemlessly as Johnny and Tim say it does. We'll just have to wait and see.


Cheers,

Stef

 

[Piggie]

The average markup on jewelry is huge. It's about 200-400% on gold. That's why the mall jewelers can run "50% off" sales all year round. The higher end stores like Tiffany don't publicly mark down, but the markups are still pretty significant. Since Apple sells predominantly through their own stores and online, and less through third parties, the retail price will be essentially the final selling price, so I would not be surprised if it is $5,000. Remember, gold-plated watches are advertised for around $3,000 at stores like Burberry. This actual 18t gold watch retails for $14,000. While it has some diamonds, and is a limited edition, it suggests that a $5,000 gold Apple Watch Edition would not be wildly overpriced at all.
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I hear what you say, but non of this matters as Apple is not a quality jewelry brand.

It is a mass, and I mean mass as in MASS MASS quantity brand, always had been.

Rolex does not sell 40 million of 1 product to everyone from a school child thru to a company director.

Apple sell cheap goods, yes I said it cheap!

Many people will pay more for their car insurance than their iPhone or iMac, perhaps paying more in fuel for their car in one month than their iphone.

It's not a quality brand in the sense you are speaking.

We will see.

One thing is for sure, the Edition watch will get stripped down, and it will be in the media in BIG numbers exactly how much of a mark up is being put on it, compared to a different cased version of exactly the same products.

Speaking about Rolex or some other brand of gold or diamond jewellery is pointless as that is not the market Apple is in. Again, Apple is in the mass quantity low cost area to sell to millions of people.

Apple could of course TRY and grind out a range of items and try and force their way into those stores. It would still seem a joke to have very high quality mechanical watches, hand crafted in glass cabinets, along side an Apple watch. Almost would be a joke, and look kinda pathetic.

Perhaps there might be a separate little glass cabinet at one end of the jewellers to hold Apple's Gadget, but it's just not the same.

It would be like having an art gallery, or hand created works of art, and along side them an LCD screen monitor, and trying to sell the LCD monitor for a Million dollars, as it has a gold surround, and hey is can display ANY picture on it's screen, not limited to just one like the painting.

It's a totally different product.

Only way I'd see Apple could try and get away with the type of price you mention would be to bundle a LOT with the edition.
Free Upgrades, Extra access to something.
Not just a different case, and $3000 extra profit for nothing more.

 

[KPOM]

I hear what you say, but non of this matters as Apple is not a quality jewelry brand.

It is a mass, and I mean mass as in MASS MASS quantity brand, always had been.

Rolex does not sell 40 million of 1 product to everyone from a school child thru to a company director.

Apple sell cheap goods, yes I said it cheap!


Only way I'd see Apple could try and get away with the type of price you mention would be to bundle a LOT with the edition.
Free Upgrades, Extra access to something.
Not just a different case, and $3000 extra profit for nothing more.

An 18kt gold watch isn't cheap, and it won't be sold in the millions. My guess is that the stainless steel models will be mostly under $1000, perhaps $750. That's comparable with the kinds of watches sold at mall stores like Zales or Rogers and Holland.

Rolex, Breitling, Cartier etc. start around $12,000. So a $5,000 Apple Watch isn't in the same league.

 

[Piggie]

An 18kt gold watch isn't cheap, and it won't be sold in the millions. My guess is that the stainless steel models will be mostly under $1000, perhaps $750. That's comparable with the kinds of watches sold at mall stores like Zales or Rogers and Holland.

Rolex, Breitling, Cartier etc. start around $12,000. So a $5,000 Apple Watch isn't in the same league.

My guess is the stainless steel model will be a lot less than $750
And that most people here are greatly over estimating the price the watch will be.

 

[KPOM]

My guess is the stainless steel model will be a lot less than $750
And that most people here are greatly over estimating the price the watch will be.

I think it will vary based on the buckle. A Movado Museum watch with a leather band retails for $595. With a stainless steel link it is $1295.

 

[Piggie]

I think it will vary based on the buckle. A Movado Museum watch with a leather band retails for $595. With a stainless steel link it is $1295.

I'm not really thinking of the strap, just the body.

Yes, of course, the strap could vary in price from ten dollars to thousands of dollars.

You could have a rubber strap for 2 dollars, or a solid gold strap for thousands.

I'm really focussing on the watch itself as the strap can be anything you want.

 

[Rogifan]

The price of the stainless steel model will be interesting. I'm guessing it will be different depending on what band you chose. The link and milanese loop might be more expensive than the leather loop for instance. As I've said before I think Apple is positioning the stainless steel watch as the flagship of the collection. I believe that's where they're hoping most of the sales will come from. I think they'll make sure not to price it too high and potentially turn people off. But at the same time if the craftsmanship really is on par with mid-range or even higher end watches it will be reflected in the price. The last thing Apple wants is to give the impression Watch is just a cheap knockoff of higher end watches (that's the feeling I get when holding an Almost 360 in my hand). Let's not forget that Mark Newson's Ikepod watches go for thousands of dollars.

 

[KPOM]

I'm not really thinking of the strap, just the body.

Yes, of course, the strap could vary in price from ten dollars to thousands of dollars.

You could have a rubber strap for 2 dollars, or a solid gold strap for thousands.

I'm really focussing on the watch itself as the strap can be anything you want.

Since the watch is being sold as an entire package, the price of the band counts, too. You may be able to purchase extra bands separately, but from all appearances you'll need to purchase a complete set initially.

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The price of the stainless steel model will be interesting. I'm guessing it will be different depending on what band you chose. The link and milanese loop might be more expensive than the leather loop for instance. As I've said before I think Apple is positioning the stainless steel watch as the flagship of the collection. I believe that's where they're hoping most of the sales will come from.

I think the Edition will be the "flagship," but agree that Apple likely wants the stainless steel to be the volume leader. What will be interesting is to see whether or not Apple attempts to get jewelers to sell the stainless steel and/or Edition models, or if they restrict sales to their own stores. Getting it into a jewelry store (or perhaps even Burberry given Angela Ahrendts' connections) would legitimize it as a fashion product.

 

[Rogifan]

I think the Edition will be the "flagship," but agree that Apple likely wants the stainless steel to be the volume leader. What will be interesting is to see whether or not Apple attempts to get jewelers to sell the stainless steel and/or Edition models, or if they restrict sales to their own stores. Getting it into a jewelry store (or perhaps even Burberry given Angela Ahrendts' connections) would legitimize it as a fashion product.

Flagship maybe wasn't the right word. What I meant was Apple will push to make the stainless steel model the most popular and best selling. I expect Apple's distribution channel for the Edition (and possibly stainless steel) watch to include higher-end retailers and perhaps jewelry stores. There's a reason Apple hired Paul Deneve and that sales executive from Tag Heuer. I'm sure their primary focus has been retail sales strategies and possibly marketing as well.

 

[mi7chy]

Watches are considered luxury items associated with Switzerland. No one would wear something that says Made in China on their wrist.

 

[Rogifan]

Watches are considered luxury items associated with Switzerland. No one would wear something that says Made in China on their wrist.

No one? That's a pretty bold statement.

 

[cmChimera]

Watches are considered luxury items associated with Switzerland. No one would wear something that says Made in China on their wrist.

I really wouldn't care.

 

[Tycho24]

My guess is the stainless steel model will be a lot less than $750
And that most people here are greatly over estimating the price the watch will be.

I agree.
Admittedly, I have NO information to base that on. My instincts say that they'll try $350/$500/$1000 as price points.
I think that the edition will have the EXACT same markup as their other products. Apple is not known for having some products with 5% markup, some with 50%, and some with 500%. They stay pretty consistent on the profit margin they maintain. If they choose 35% as their margin on the watch for example & the edition costs them $1000 to manufacture, due to the gold. I'd expect $1350 as a retail price. I really don't see watch manufacturer's markups having ANY bearing here.

 

[Rogifan]

I agree.
Admittedly, I have NO information to base that on. My instincts say that they'll try $350/$500/$1000 as price points.
I think that the edition will have the EXACT same markup as their other products. Apple is not known for having some products with 5% markup, some with 50%, and some with 500%. They stay pretty consistent on the profit margin they maintain. If they choose 35% as their margin on the watch for example & the edition costs them $1000 to manufacture, due to the gold. I'd expect $1350 as a retail price. I really don't see watch manufacturer's markups having ANY bearing here.

It all depends on how much they're paying for gold. The commodity price for gold as of this afternoon is $1,180. I don't know if we can look at the rest of their product line to determine pricing. This is new territory for Apple. They've never really done fashion before. My guess is the Edition version will be more expensive than people expect and the stainless steel version will be less than expected.

 

[Piggie]

Will be interesting to see new firms spring up that will offer to Gold plate your stainless version, so it looks exactly the same as the gold model but for a fraction of the price.

 

[Rogifan]

Will be interesting to see new firms spring up that will offer to Gold plate your stainless version, so it looks exactly the same as the gold model but for a fraction of the price.

I doubt it will look exactly the same. Apple might eventually have a MFI type program that allows 3rd parties to create watch bands but I don't see them going beyond that. So if companies do create something I think it will be obvious it's not the real thing.

 

[KPOM]

I agree.
Admittedly, I have NO information to base that on. My instincts say that they'll try $350/$500/$1000 as price points.
I think that the edition will have the EXACT same markup as their other products. Apple is not known for having some products with 5% markup, some with 50%, and some with 500%. They stay pretty consistent on the profit margin they maintain. If they choose 35% as their margin on the watch for example & the edition costs them $1000 to manufacture, due to the gold. I'd expect $1350 as a retail price. I really don't see watch manufacturer's markups having ANY bearing here.

Gold is a commodity that has swung wildly in price over the last few years. 5 years ago, it was over $2000/oz. Now it's a lot lower, but that can change. Plus, this is Apple's first real foray into jewelry, so it's tough to tell whether they will stick with their traditional margins or adopt margins more similar to the jewelry industry. Remember, most people won't be replacing the watch every year or even every other year. It probably will have a slower replacement rate than the iPad.

 

[Tycho24]

Gold is a commodity that has swung wildly in price over the last few years. 5 years ago, it was over $2000/oz. Now it's a lot lower, but that can change. Plus, this is Apple's first real foray into jewelry, so it's tough to tell whether they will stick with their traditional margins or adopt margins more similar to the jewelry industry. Remember, most people won't be replacing the watch every year or even every other year. It probably will have a slower replacement rate than the iPad.

There's obviously not going to be a half oz of gold in the watch. So, that price in no way justifies the (imo) wild guesses of how much edition will be.

Also, I agree with your points... they just seem VERY disjointed from your conclusions to me.

YES, I think they will be replaced less often than an iPad. Ummmmmm...... how does that even vaguely relate to the markup of gold, in your mind??

 

[Piggie]

I doubt it will look exactly the same. Apple might eventually have a MFI type program that allows 3rd parties to create watch bands but I don't see them going beyond that. So if companies do create something I think it will be obvious it's not the real thing.

I'm curious.

Given its the same size and shape device exactly with the same screen, and you fit the same strap. How would you tell any difference between a gold edition and a gold plated in the same tone of gold stainless model.

You would have the exact same look for a fraction of the price, and only you would know.

Yes. No .?

 

[Rogifan]

I'm curious.

Given its the same size and shape device exactly with the same screen, and you fit the same strap. How would you tell any difference between a gold edition and a gold plated in the same tone of gold stainless model.

You would have the exact same look for a fraction of the price, and only you would know.

Yes. No .?

Given what's the same size?

 

[Piggie]

Given what's the same size?

The case / body of the device.

All 3 materials have exactly the same size, shape and screen, and can take the same straps. So it's only in reality a weight and color difference, so unless you picked one up, a gold plated one would be identical to a steel one with the same strap yes?

Perhaps this may be an Answer for perhaps thousands of people who like the gold look if the edition is any where near the crazy prices some on these forums are predicting.

 

[KPOM]

There's obviously not going to be a half oz of gold in the watch. So, that price in no way justifies the (imo) wild guesses of how much edition will be.

Also, I agree with your points... they just seem VERY disjointed from your conclusions to me.

YES, I think they will be replaced less often than an iPad. Ummmmmm...... how does that even vaguely relate to the markup of gold, in your mind??

Jewelry has extremely high markups because it is something that people purchase occasionally, not every year. Therefore, companies try to make as much as they can on each individual sale. If Apple is going to sell someone an Edition watch once every 4 or 5 years, they'll want to make the most of it.

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The case / body of the device.

All 3 materials have exactly the same size, shape and screen, and can take the same straps. So it's only in reality a weight and color difference, so unless you picked one up, a gold plated one would be identical to a steel one with the same strap yes?

Perhaps this may be an Answer for perhaps thousands of people who like the gold look if the edition is any where near the crazy prices some on these forums are predicting.

I think the issue is that you are thinking of the Edition watch as a technology item, while others are thinking of it as jewelry. There's nothing that a $15,000 18kt gold watch can do that a $10 Timex can't. At this level, the price has less to do with technical capabilities and more to do with image. Apple appears to be marketing the Edition as jewelry that happens to have technological capabilities.

Find ANY 18kt gold watch (not just a gold-plated watch) for less than $5,000 and then get back to us. As I pointed out, Burberry sells gold-plated stainless steel watches for upwards of $3,500.

We'll all find out soon enough. If Apple decides to sell gold watches at only a 35% markup as you are suggesting, then they'll sell hordes of them. But they'd be leaving LOTS of money on the table. I just don't see Apple doing that.