WatchProSite|Market|Digest
WatchProSite|Market|Digest

Horological Meandering

Absolutely...

 

Magnus,

Indeed!

What I find interesting is the extension of the margins here - the Apple Watch at $500 already is making Apple a healthy profit (and that retail price includes a strap, so removing the strap from the package increases Apple's profit); the Hermes leather wristbands sold at $300 (which I am assuming have a similar production cost as the simple strap for the Apple Watch) are doing the same for their maker as well, I'm sure. And it seems pretty obvious to me that the production cost of the three software watch faces and the etching on the case are minimal.

So what we have here is an already-profitable (very much so, as you say) product and another already-profitable product - and then a substantial additional margin added on top of both those existing profits!

As a consumer, it's eye-opening; from the corporate perspective, it is brilliant.

Best

E.

PS ...but do you know what really slays me? If I were in the market for an Apple Watch (I'm not; but let's say Mrs E wanted one), even though I think its pricing is beyond the pale...I would *still* consider buying this version!!!

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BREAKING: Apple partners with Luxury Goods Manufacturer Hermès for Apple Watch straps...

 
By: Ornatus-Mundi : September 9th, 2015-12:52
and you get a custom wach face on top. Now you have have one style both as a traditional luxury watch as well as a modern luxury smart watch. Great move from both sides (I told you they knwo what they re doing...)! Cheers, Magnus This message has been edi...  

Hmmm...

 
By: KMII : September 10th, 2015-02:38
I still feel that there is only one proper place for a Hermes watch strap, and that is on a Parmigiani Fleurier :)

Fair

 
By: KMII : September 10th, 2015-06:12
Those work, too - all with a power reserve over 24 hours ;)

This is very impressive!

 
By: Esharp : September 10th, 2015-08:01
The pricing, that is: $1100 for the watch on a conventional strap. Let's see. That's $600 for the watch (this we know), and $500 for the strap + the three additional software watch faces + the etching. I'm not up to the moment on strap prices but I would ... 

It was always assumed that the Apple Watch has the highest margin...

 
By: Ornatus-Mundi : September 10th, 2015-08:23
of all Apple products, so why should this differ here? And luxury watches definitely have solid markup as well, so I see nothing special if viewed from a watch industry perspective. Best, Magnus

Absolutely...

 
By: Esharp : September 10th, 2015-19:53
Magnus, Indeed! What I find interesting is the extension of the margins here - the Apple Watch at $500 already is making Apple a healthy profit (and that retail price includes a strap, so removing the strap from the package increases Apple\'s profit); the... 

The Hermès - Apple collaboration - unprecedented for Apple, unforeseen difficulties!

 
By: Ornatus-Mundi : September 11th, 2015-23:57
In an interview published by the Wallstreet Journal (open only to subscribers), both Apple's Chief Design Officer Jony Ive and Hermès Artistic Director Pierre-Alexis Dumas discuss the partnership between the two companies. (left, Hermès Artistic Director ...