Why the Apple Watch is so expensive


    Why the Apple Watch is so expensive

  • 1 Apple targets certain customers

    By pricing its products high, Apple targets certain customers. Apple's strategy is always to always be seen as the product owned by people who want to differentiate themselves from others, and as a result, it sells its products for higher prices.

  • 2 Apple is not selling the watch as a technology product

    While some models are as sold for as low as $349, some models are very expensive that they compete with the already existing mechanical watches. Apple is trying to sell the watch as a fashion product and not as an electronic product and this is why its price is high.

  • 3 Some models contain real gold

    Some Apple watches cost more than $10,000 because they contain real gold and because they were designed to compete with the already existing expensive watches.

  • 4 The technology is still new

    The Apple watch was released in 2015. New technologies are usually priced at a premium price then they gradually go down in price. While Apple never sells cheap products, its products become less expensive as time passes.

  • 5 Apple wants to compete with ordinary watches

    Apple's goal is to compete with ordinary mechanical watches, which are expensive. By making its watch as expensive as those ones, Apple can seem like a real competitor to those models (See why men love watches).

  • 6 People buy Apple products because they are expensive

    One of the reasons people buy Apple's products is that they want to be different. The fact that an Apple product is always expensive helps those who want to differentiate themselves from the rest of the people. This is why Apple keeps its prices high (See why people buy branded clothes).

  • 7 The supply was limited

    When the Apple watch was first released, it wasn't easy to get one and the supply was limited. Early adopters don't mind paying a lot of money just to get a product before everyone else does.

  • 8 Apple's pricing strategy was very successful

    Apple has always made money by selling premium products that are more expensive than most other products. Because the strategy worked well in the past, Apple kept going with it and it priced the Apple watch high.

  • 9 Apple is trying to target a broader range of customers

    The Apple watch has so many different models starting from $349 and going up to $17,000. While the cheapest model is still not considered cheap, Apple is still trying to target a larger market with its different models.

  • 10 Fashion items are sold at a premium price

    Once a product is sold as a fashion item, its price deviates greatly from its cost. A Burberry bag, for example, is sold for a high price that has nothing to do with its manufacturing cost.