Apple Watch Revenue Will Likely Be Dominated by Expensive Gold Edition
Earlier 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.
Popular Stories
Phishing attacks taking advantage of Apple's password reset feature have become increasingly common, according to a report from KrebsOnSecurity. Multiple Apple users have been targeted in an attack that bombards them with an endless stream of notifications or multi-factor authentication (MFA) messages in an attempt to cause panic so they'll respond favorably to social engineering. An...
At least some Apple software engineers continue to believe that iOS 18 will be the "biggest" update in the iPhone's history, according to Bloomberg's Mark Gurman. Below, we recap rumored features and changes for the iPhone. "The iOS 18 update is expected to be the most ambitious overhaul of the iPhone's software in its history, according to people working on the upgrade," wrote Gurman, in a r...
Apple will introduce new iPad Pro and iPad Air models in early May, according to Bloomberg's Mark Gurman. Gurman previously suggested the new iPads would come out in March, and then April, but the timeline has been pushed back once again. Subscribe to the MacRumors YouTube channel for more videos. Apple is working on updates to both the iPad Pro and iPad Air models. The iPad Pro models will...
Apple today announced that its 35th annual Worldwide Developers Conference is set to take place from Monday, June 10 to Friday, June 14. As with WWDC events since 2020, WWDC 2024 will be an online event that is open to all developers at no cost. Subscribe to the MacRumors YouTube channel for more videos. WWDC 2024 will include online sessions and labs so that developers can learn about new...
Apple may be planning to add support for "custom routes" in Apple Maps in iOS 18, according to code reviewed by MacRumors. Apple Maps does not currently offer a way to input self-selected routes, with Maps users limited to Apple's pre-selected options, but that may change in iOS 18. Apple has pushed an iOS 18 file to its maps backend labeled "CustomRouteCreation." While not much is revealed...
Apple on late Tuesday released revised versions of iOS 17.4.1 and iPadOS 17.4.1 with an updated build number of 21E237, according to MacRumors contributor Aaron Perris. The updates previously had a build number of 21E236. The revised updates are available for all iPhone and iPad models that are compatible with iOS 17 and iPadOS 17, but they can only be installed via the Finder app on macOS...
With the App Store and app ecosystem undergoing major changes in the European Union, The Wall Street Journal today shared a profile on App Store chief Phil Schiller, who is responsible for the App Store. Though Schiller transitioned from marketing chief to "Apple Fellow" in 2020 to take a step back from Apple and spend more time on personal projects and friends, he is reportedly working...
Top Rated Comments
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.
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.