Gold Apple Watch could sell for $10000 – AAPL

September 19, 2014 Posted by admin

With the Apple Watch, Apple (NASDAQ:AAPL) is moving from “affordable luxury” to “Lifestyles of the Rich and Famous.”

Apple introduced its smartwatch on Sept. 9, saying it will start at $349 when it becomes available in early 2015. But that’s for the plain vanilla model.

The smartwatch comes in three collections: the Apple Watch, with a stainless steel case; the Apple Watch Sport, with an anodized aluminum case; and Apple Watch Edition, with an 18-karat rose or yellow gold case.

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John Gruber of Daring Fireball estimates that the Sport version will start at $349, the stainless steel version will start at $999 and the luxury Edition version will start at $4,999. And the gold Edition version could cost $10,000 or more, he said.

“The lowest conceivable price I could see for the Edition models is $1,999 — but the gold alone, just as scrap metal, might in fact be worth more than that,” Gruber wrote. The watch will use a gold alloy and not be gold plated, he said.

“I think Apple Watch prices are going to be shockingly high — gasp-inducingly, get-me-to-the-fainting-couch high — from the perspective of the tech industry,” he wrote. “But at the same time, there is room for them to be disruptively low from the perspective of the traditional watch and jewelry world. There’s a massive pricing umbrella in the luxury watch world, and Apple is aiming to take advantage of it.”

But while luxury watches from Rolex can become family heirlooms, the technology in the Apple Watch could make it obsolete in just a few years, Gruber said. Also, the Apple Watch only works when it’s paired with an iPhone 5 or 6 series handset. Plus, the Apple Watch will need to be charged at least nightly. Apple hasn’t given battery life details for the device yet.

UBS predicts that Apple will sell 24 million units of Apple Watch in fiscal 2015, which ends next September, and 40 million units in fiscal 2016, with an average selling price of $430.

“We probably are underestimating average selling prices,” UBS analyst Steven Milunovich said in a research note Thursday. “Estimates for the 18-karat gold Edition range from $1,200-$10,000. That won’t be a high-volume seller, but the point is that our $430 ASP assumption may be conservative.”


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