When the Apple Watch was announced earlier, there was such a wave of analysts and opinion peddlers who were convinced it was going to be a dud. In the immortal words of Jimi K. Agbaje, I am not (and was never) one of them.
This was me, about a month ago:
Apple, according to the data available, sold an estimated one million Apple Watches, in pre orders alone by this launch weekend. Those aren’t dud numbers.
Now, to be clear, the reviewers/analysts/fortune tellers made their call for what I imagine are logical reasons. Logical, but wrong. Yes, that’s possible. When you’re dealing with buyers, especially when it has to do with brands, and especially when that brand is Apple, you have to start your analysis from a point several steps removed from logic.
When you combine the very human need for signaling, with Apple’s cool, iPhone’s popularity, and the novelty of smart watches, I’m surprised anyone thought this would be a dud. It might never sell like a phone, given that it isn’t one, but when was the last time any watch brand took a million in sales over one week, let alone a million in preorders. It took Apple 2 years to sell a million iPods, 2.5 months to sell a million iPhones, a month to sell a million iPads, and a week to sell a million Watches. Not bad. I firmly believe the sales will gradually increase over time, considering the ‘I want one because everyone has one’ crowd hasn’t woken up yet.
My second though on Apple Watch, from three days ago.
I said that because the material costs aren’t that much greater between the Watch Sport and the Mid range Watch, yet the Watch will command so much more demand as a more affordable (and cooler) replacement for the $2000-$5000 I-can-finally-afford-nice things entry point Omegas, Brietlings and the rest. Add it’s clearly higher profit contribution margin, and it will be the money spinner, while the Sport, starting at $349 will drive popular demand. The relatively fewer rich people can fiddle with their $17,000 Editions from atop Mount Olympus.
The data suggests that 62% of sales were Sport, but with average revenue per item of around $500+. there’s a lot of mid range Watches dragging those prices up. I don’t think there’ll be that many people plunking down $10,000 and more, but they do exist. When Apple makes the full information public we will know the details but for now, I think what we see is what I fully expected.
I’m curious about which of you will be going out to get one. I want one. But I still use an iPhone 4S which should be a travesty to humanity, but is not because the effing thing just won’t die, does not even have a scratch on it. I stopped using a case for a year now so I could maybe scratch it to convince myself I need a new one, but it’s spotless. And I don’t know about just turning off a working phone simply because I want something newer. Apple juju has not hit me that hard. So for now, I might have to vicariously Watch you guys on this one. Get it? I’m funny (no I’m not).
You can read more about the Watch sales week here.
What are your thoughts on the Apple Watch? And are you going to buy one?
Let me know, you know, for science.
Follow me on twitter @eldivyn