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Apple Watch Revenue Will Likely Be Dominated by Expensive Gold Edition

Gold Apple WatchEarlier this week, in a report about the Apple Watch's missing health features, The Wall Street Journal claimed that Apple has placed 5 to 6 million Apple Watch orders with overseas suppliers ahead of the wrist-worn device's launch in April.

The report specified that half of the first-quarter orders will be allocated to the entry-level Apple Watch Sport, while one-third of shipments will be for the mid-tier Apple Watch. The remaining orders will be for the expensive Apple Watch Edition.

While the Apple Watch Edition will have the least amount of orders among the three models, with between 850,000 to 1 million units shipped, well-known Apple pundit John Gruber of Daring Fireball believes that the expensive gold model could account for the majority of Apple Watch revenue. Multiple reports claim that the Apple Watch Edition will cost over $4,000, making it one of the most expensive products the company has ever sold.
"So as a business — if the WSJ’s sources are correct, and if Apple is correctly predicting demand — Apple Watch revenue will be dominated by the gold Edition units, accounting for double or more of the revenue from all the other models combined. The Edition models would thus do to the Apple Watch lineup as a whole what the iPhone, iPad, and Macintosh do to the entire phone, tablet, and PC industries, respectively: achieve a decided majority of the profits with a decided minority of the unit sales."
Apple Watch will start at $349 for the entry-level Sport model, while pricing information for the other two models has not been confirmed. Apple will reportedly increase production of the Apple Watch Edition to over 1 million units per month in the second quarter, indicating that demand could be strong for the company's first new product since the iPad in 2010. Early sales predictions for the Apple Watch have been all over the map, ranging from between 8 million to over 26 million units during 2015.

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Top Rated Comments

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17 months ago
I can see spending $4k+ on an heirloom timepiece but not on something that will be outdated in a span of months or even a couple years.

I haven't heard of a substantive difference in the technology between the different models. As a result, it seems like you'd be better off buying a Sport Model and investing the rest in a couple of gold coins.
Rating: 40 Votes
17 months ago
Better off buying a Rolex that goes up in value.
Rating: 38 Votes
17 months ago
The gold edition is more expensive than a mac pro !!
If I have that kind of money to spend on a watch, would surely go with omega and buy the sport edition apple watch. But that just me.
Rating: 35 Votes
17 months ago
For a device a little more powerful than the AppleTV and less functional than iPod touch, it should be priced accordingly. $249 entry level and i'd be in line on launch day. $349...it's just above my instant-buy threshold. I have to think about it.
Rating: 33 Votes
17 months ago
Finally. Someone taxing the rich.;)
Rating: 29 Votes
17 months ago
a fool and their money...
Rating: 28 Votes
17 months ago
Given Apple's track record, there's no way I'd drop thousands on a low-functionality device, only to have it abandoned by a new model within two years.
Rating: 22 Votes
17 months ago
Only in the land of rumors could features that were only a matter of speculation, were never promised, announced, or even hinted at, be called "missing."
Rating: 18 Votes
17 months ago

Omega?


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Rating: 13 Votes
17 months ago
Producing a million of the Edition Watch makes it much less appealing. At $4,000+ I can entirely understand if it was a limited run but for a mass-produced timepiece I would rather buy a standard Watch and invest the rest in a Rolex-level brand.

Although speculatively if the report is correct I believe the price may surprise at well under $3,000 at that quantity. A million watches per month at $4,000 does not seem realistic to me, even for Apple.
Rating: 9 Votes

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