Apple succeeds in selling 2.7 million units of Apple Watch.
As reported by Reuters, a renowned research company “Slice Intelligence” that is known for mining email receipts mentioned about Apple Inc. massive profits governed through the sales of Apple Watch and accessories. Slice has evaluated the email receipts of more than 2 million customers and has deduced that the company has been successful in selling almost 2.79 million Apple Watches by June, FY15.
17 percent of the customers who bought the device preferred to opt for more than one band. The pattern adopted by customers has become an additional “grab” for Apple users. Moreover, the research firm also reported that the Apple’s black sports brand is the most desired choice when buying an Apple Watch. Also, it is said to be the most sought after band choice. Customers are more inclined towards opting for a luxurious band.
Reuters also mentions IHS, another renowned research firm reported that the entry level band is being retailed for $49 but in reality it has a manufacturing price of $2.05. These costs, however, do not include the packaging and shipping costs. However, Mr. Tim Cook, the CEO of Apple claims that the manufacturing costs which have been estimated by various research firms are extremely inaccurate.
Slice research also indicates that the Apple Watch Sports edition being priced at $349 is the most desired version of the wearable device. The quilted leather loop to go with this edition is priced at $149 whereas the stainless steel link bracelet is priced at $449 which boosts the shopping budget on the whole.
According to Carolina Milanesi, the research chief at Kantar Worldpanel ComTech stated, “It's just a psychological thing. I start with the least investment, and then I spend more money, but [eventually] I get something else.”
The several options provide the consumers with various band options that can be paired according to the attire. This gives the product a customized feeling. The associated accessories are likely to become a must-have for wearable devices. Mr. Kevin Keller, an analyst at HIS expressed his feeling and mocked over the issue by saying, “Of course because it's Apple, it's selling the razor, sell the blade.”
Apple products are highly sought after and have a relatively loyal consumer base that is ready to buy any product that has an Apple logo over it. So till the time, the company has its loyal consumers they can work according to their own business model where all their products will become an eye candy no matter what.
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