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And they used a bit of textbook marketing magic to do it. Remember the Apple Watch Edition? The one with a gold case that cost 17 grand? The point wasn't to s
by samatman 6y ago
And they used a bit of textbook marketing magic to do it.
Remember the Apple Watch Edition? The one with a gold case that cost 17 grand?
The point wasn't to sell it, although there's a stratum of customer who always get the most expensive version of whatever they're getting.
The point was to make the entry-level price look reasonable, and it worked.
- jeanjogr 6y agoMore than make the price reasonable, I would wager it was to anchor the Apple Watch in the "watch" category, rather than the "electronic gadget" category in people's mind. It's not some $XXX toy for notifications and whatever. Much like watches, it is as much about functionality as it about style. Much like watches, it both exists in a expensive, luxury form and in an everyday form. You're buying a Swatch, with Rolex available if you want - not a fitibit.
- jiveturkey 6y agoon top of that, they created their own gold alloy for it. One that allowed them to use less gold at the same karat weight! For that, you paid a premium. Genius.
- sneak 6y agoThe melt value of the gold was well under $3000, for a $17000 watch. Even it it had been solid 24k 99.9 fine (I believe it was 14k gold), it would have been a small fraction of the cost, and a low volume item to boot. I doubt the custom alloy contributed significantly to their margin. IIRC most gold watches are 12-14k for durability.