Apple Watch too expensive? Then it’s not aimed at you
If you balked at the price of an Apple Watch, then you’ll possibly be surprised to learn something: It’s not targeted at you. According to two recent reports, Apple is hitting the upper end of the market sweet spot with its pricing for the soon-to-be-launched wonderwatch.
According to research by Morgen Stanley, quoted by The Economist, the price range of US $200-300 is the absolute sweet spot for a wearable device … but almost 40 percent of consumers would be prepared to pay more – signaling a lucrative revenue opportunity for Apple, which is always at the premium end of the market.
What’s more, number crunchers Generator Research claim that Apple’s pricing strategy is “insanely smart”. The company claims that by offering high-end models retailing for up to $17,000, Apple will succeed in creating a new high water mark when it comes to the ASP (average sales price).
In a report published this week, Generator says “an extremely astute pricing strategy … will allow the company to effectively guarantee that the ASP will be well above the entry level of $349, and probably some way above $600.”
Apple tops the pricing charts for smartwatches – no surprise
Apple Watch pricing starts at $349, a clear $150 more expensive than Samsung’s curvy flagship, the Galaxy Gear S.
Meanwhile, smartwatch maker Pebble has already raised more than $18m on Kickstarter for its newest model, the Pebble Time, which will retail for $199, with nine days still to go.
It is already the crowd-funding site’s most-successful ever project, by a margin of $5,500,000 – and has knocked the original Pebble Watch into third place – it raised $10.2 million in May 2012.
And if you’re looking for a completely alternative take to the Apple Watch, then perhaps a Neptune is for you. Developed by the inventor of the super-sized Neptune Pine smartwatch, the just-announced Neptune Suite is a new approach – moving the “brains” of a smart device to a wristband, and using interchangeable, different sized displays to display information, such as the Pocket Screen and the Tab Screen.
The heart of the system is the Neptune Hub, a device which redefines the high-performance wristband, with a quad-core processor as well as 3G/LTE, Wi-Fi, GPS, Bluetooth and NFC. Early adopters can sign up for the entire package on rival crowd funding site Indiegogo for $599.
So far, Neptune has raised $850,000 – easily passing a $100k goal – and the campaign runs through mid-April.
For the price of a mid-range Apple Watch, Neptune is offering an entire suite of devices including screens and a headset – a value proposition that is bound to appeal to those who just can’t bear to drop so much money on an Apple Watch.