Latest Apple Watch estimates: 3M sales, $2B revenue, Apple’s most profitable product ever

[Victorious Secret]

 

 

 

 

File this under "not shocking" even though some people are going to be surprised that such a device could sell so much, so fast. 

 

These estimates come ahead of the news that the Apple Watch is in fact shipping now, so consumers might start getting them before the 24th in some cases. 

 

I'm pretty amazed. We all know Apple markets well, but this is something else. Hopefully this encourages other smartwatch makers to take the game seriously and make products that just look good and wear good, something that not all Android Wear products have figured out yet. A watch can only be a watch when it kinda fits like a watch. 

 

Who'd a thunk it. Make a decent product and market it well, you'll sell a lot. Google, take note. Treat Wear seriously, don't leave it by the side of the road like half the shit you come up with. 

 

 

 

 

A leading technology analyst has estimated that Apple Watch sales in the first two weeks are likely to hit 3M, comprising 1.8M Sport models, 1.2M steel and 40,000 Editions – generating more than $2B revenue. Think Big Analytics principal Carl Howe also estimates that gross margins on the wearable are likely to exceed 60%, making the Apple Watch the company’s most profitable ever product.

 

[The electronics] in the expensive models are the same ones used in the Sport models, and they just don’t cost that much. And while adding Gold cases and designer bands add cost to the bill of materials, the costs are small compared to the price premiums paid for these products. Unlike in the consumer electronics business, I see no pressure for prices to fall and if anything manufacturing costs will, resulting in a very profitable business.

 

Howe readily admits that his analysis, like any other from outside the company, are “really just educated guesses,” but he’s a credible name and his reasoning makes sense … 

 

 

Howe bases his sales estimates on a mix of three sources: Slice sales data (which is limited to the USA, so will substantially understate global sales), polling on model orders and Quanta production estimates. Combining the three, Howe believes it is clear that initial sales will be constrained by supply rather than demand.

 

 

http://9to5mac.com/2015/04/20/apple-watch-sales-estimate/

http://www.macrumors.com/2015/04/20/apple-watch-preorders-begin-shipping/

[projectmayhem]

I am surprised people are actually buying this.

[NicekillBG]

the fuck is this shit

[Prastupok]

Sadly I'm not in the least bit shocked. I said from the announcement they'd have hundreds of thousands of buyers. I was a bit wrong... they have millions.

[Sidiox]

As I've said before, oh how I fear the wave of stupidity that will start when these Watches arrive on peoples wrists...

Also, this reminds me a lot of the "no pre-ordering" thing we have about games, because to be fair we haven't really seen all the reviews yet. And as Linus said, only the people with a good Apple history have gotten the review units. 

I think it might have been a lot wiser for people to have waited for actual reviews. But the mainstream getting wiser? Silly me for thinking that is possible.

[Homicidium]

Well, this just shows how far and how successful you can be with a certain brand name and a good marketing strategy. 

 

I cannot be bothered by it, I actually tried it on at the Apple Store last week and it was cool and all, but I just don't like the overall concept of a smart watch, and that's independent of the brand. But then again I'm probably not the type of consumer these watches are targeted at.

[KirbyTech]

Not surprised, I said they will make a billion at lest. I was wrong 2 billion almost. I don't get the hate for the watches, sure they suck but they will push the market. Apple is always the one it seems to come in late and make a big splash. This watch looks nice, now the price is dumb for anything past the sport. I see nothing wrong with spending $500 -700 on something you will use everyday for the next 2-3 years. 

[DildorTheDecent]

I knew it. 

[Lolzious]

This makes... no sense.

 

How can people be the stupid??

[Mr.Jackson]

Fossil masterrace!

[Prastupok]

This makes... no sense.

 

How can people be the stupid??

 

People think it makes them better... let them. And as a matter of fact I also have a product... it's $250 bucks, and I'll put it on sale with the apple logo, so prepare for my incoming revenue,

[Lolzious]

People think it makes them better... let them. And as a matter of fact I also have a product... it's $250 bucks, and I'll put it on sale with the apple logo, so prepare for my incoming revenue,

Haha yea that's pretty much it

I wonder how much those watches cost to manufacture? 

[Prastupok]

Haha yea that's pretty much it

I wonder how much those watches cost to manufacture? 

 

I'm guessing along the same profit margin as a phone, or about 70%

[Homicidium]

This makes... no sense.

 

How can people be the stupid??

 

Considering that the other smart watches aren't that much better nor (in some cases) cheaper, I don't see why you would question the intelligence of the buyers. 

[C0LL0SS0S]

All that Apple hate, it feeds me.

Seriously grats to apple for making a ton of money, mabye its bad yes, but maybe its not ^^ I doubt that you guys tested them so just wait and be neutral until you tested it!

 

Edition Edition is kinda self explanatory, it lets everyone know that you are rich, rich people want exactly this since they mostly compensate

[Lolzious]

Considering that the other smart watches aren't that much better nor (in some cases) cheaper, I don't see why you would question the intelligence of the buyers. 

I mean, smart watches as a whole are stupid as hell, how do so many people buy them?

[Homicidium]

I mean, smart watches as a whole are stupid as hell, how do so many people buy them?

 

Because Apple are masters of marketing, period. 

[mr195]

If you ask me, Apple is genius. They know people are stupid, they know people will buy it. They are good at what they do.

[Thorium19]

After going into the apple shop in the city centre to look at them, I can see why people are flocking to buy it, it looks like the usual well constructed apple hardware, but I'm still surprised at just how many they've sold. It looks like a really bad design, but the software used is really rather decent and pretty quick, something that I still see a slight issue with android wear over. Google seriously need to make some changes to android wear and start marketing it a lot harder, otherwise they're going to rapidly fall behind apple.

[Victorious Secret]

I just gotta say, the tears from haters are amazing to see. Apple, AMD, Nvidia; whatever. Like clockwork, your rage is. 

[Octagoncow]

I'm not extremely surprised since Apple always has success with products nowadays. What I'm REALLY interested in is how well the next apple watch will sell. In my mind there are going to be a lot of disappointed people once more realistic reviews come out and people realize that scrolling through Instagram on a watch is dumb. But, maybe my expectations for a smart watch are different from the average consumer.

 

I don't even really blame people for buying it. Yeah we have Android wear and pebble; but, pebble can't do nearly as much as the apple watch (when on iOS) and you can't actually expect people to switch phone operating systems just to use an Android wear device.

[Icecube26]

people are buying this not the because it is good ...... but because its from apple.... they want to look cool......

[Blackie Sheen]

I wish people bought things based on reviews and not only based on peer pressure or the desire to fit in a group of people

[Octagoncow]

I just gotta say, the tears from haters are amazing to see. Apple, AMD, Nvidia; whatever. Like clockwork, your rage is. 

 

I think that people on this forum forget that they aren't the average consumer. Just because the features don't appeal to them, it makes the Apple Watch a bad product. I'd say that if you don't mind the screen not being on 100% of the time and having to recharge it every day it's pretty compelling for an iPhone user. I don't think there are many iPhone users on the forum though.

[Victorious Secret]

I think that people on this forum forget that they aren't the average consumer. Just because the features don't appeal to them, it makes the Apple Watch a bad product. I'd say that if you don't mind the screen not being on 100% of the time and having to recharge it every day it's pretty compelling for an iPhone user. I don't think there are many iPhone users on the forum though.

 

Thats a big part. No perspective. I didn't want any Smartwatch for a while, LG however almost got my money with the R because it simply looked like a normal watch. Then Apple came along and said "oh yea, you can actually TRY THEM ON". Which is great, because when I walk down to my local AP dealer, he gets me a watch to ACTUALLY WEAR. 

 

Thats a big step. Getting someone physical access to a device? It lets them actually gauge in a better way if they want something. Apple knows that, its not like they have a couple thousand stores for shits and giggles. Get people into a store, get them interacting with the products; the rest is history. 

 

I can't be mad at Apple for knowing how to run a retail operation, marketing their products well and then getting sales. The Watch is simply a good watch. Not great. Nothing something that a casual consumer needs, but then again how much of what we own right now is a need? I wager very, very little. 

Its also why I don't judge people on what they buy. Im the guy who spends a few grand on a lens, or a drone, or what most people spend on their rigs on a new set of tires for the summer. Can't really judge people on what they buy, since we all have varying wants. Doesn't mean we call people fanboys for what they decide to buy. I just wish people on this site acted as maturely as they all claim to be.