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Apple Watch U.S. Sales Estimated at 2.8 Million, Sports Band May Have Base Cost of Just $2
The report claims that about 17 percent of those Apple Watch customers proceed to spend hundreds of dollars on extra bands for the smartwatch, enabling Apple to make a profitable double dip into customers' wallets. While the Sports Band starts at $49, for example, technology research firm IHS estimates the 38mm fluoroelastomer band costs Apple just $2.05 to make.
The estimate does not include the cost of packaging and shipping, and the bill of materials may in fact be slightly more expensive, but it remains clear that Apple has a significant profit margin on spare bands. Apple also sells the Classic Buckle, Milanese Loop and Leather Loop retail for $149, Modern Buckle for $249 and Link Bracelet for $449 through the Apple Online Store.
"It's just a psychological thing," said Carolina Milanesi, chief of research and head of U.S. business at Kantar Worldpanel ComTech, a consumer research firm. "I start with the least investment, and then I spend more money, but I get something else."Apple Watch in-store reservations at Apple Stores began earlier this week ahead of the wrist-worn device's second wave launch in Italy, Mexico, Singapore, South Korea, Spain, Switzerland and Taiwan on June 26. A limited selection of Apple Watch models will be available at 10 Corso Como in Milan, BOONTHESHOP Cheongdam in Seoul and Malmaison by The Hour Glass in Singapore.