Gruber’s price estimates for the Apple Watch bands seem way out of whack. Apple Watches and associated watch bands are going to sell in the millions. There is a principle called ‘economy of scale’ that will provide Apple significant advantages over all other premium watches, smart or not. I saw a unit sales estimate for Rolex a few days ago of 675,000 units per year combined for all models (but I cannot vouch for the veracity of that number). If true, Apple will sell at least that many per month and, possibly, double that amount – twelve to twenty-four times the volume of Rolex. That, along with Apple’s famous volume supplier contracts, means significant component cost savings. Even with Apple’s traditional 40% gross margin (which is not that high compared with most luxury items), the prices for the Apple watches and watch bands will be higher than everyone would like, but not crazy like some of the estimates that we have seen.
For the steel Apple Watch, I doubt that any band option will add more than $200 or so. If you accept Gurber’s base prices of $749/$799, then my guess is that the maximum will be $949/$999 with the premium band option. I cannot believe that the link bracelet will double the price of the steel Apple Watch, as Gruber’s speculates.
I believe that the space black steel Apple Watch will command a price premium, but I do not expect that premium to be more than $100. Apple keeps a tight supply chain and will rapidly adjust production to match consumer demand.
I don’t know what to think about the gold version. I don’t know how much the watch, itself, will cost, but I can certainly believe that a gold watch band will add a hefty delta to the price. Not only will the gold content can’t really see people attaching a plastic sports band to it.
In my opinion, the majority of people who are
Source : http://macdailynews.com/2015/03/08/john-gruber-apple-watch-pricing-is-going-to-raise-a-ruckus/?like_comment=1603130