Here's How Apple Generates Revenues Through Apple Watch Sales

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.

Bidness ETC - Can Apple Watch Act As The Next Gaming Platform ?

Apple Watch has immense potential to act as a gaming platform.

Apple Inc. is captivating the market with its top notch products and now with the launch of Apple Watch their game is likely to get stronger. The company is likely to become the next big thing for advertisers and smartphone users since the device has immense gaming potential. Advertisers are also keen to bolster and adapt their apps. However, Mr. Maximo Cavazzani, the mastermind behind Trivia Crack believes that the adaptation for application on Apple watch is relatively complicated.

Many developers believed that the adaptation for this Apple product would resemble the iPad apps with the feasibility to cater to several advertisements. However, quite different to this perception, the watch has a small sized screen along with a compact processor that changes the dynamics of the application to a great extent.

Tim Cook, the chief executive officer of Apple is the man behind the removal of several features that dealt with in-app purchases on the watch considering the hardware constraints. However, the best way to start churning revenues on this device is via gaming applications. Considering the statistics obtained from App Annie, almost 10 percent of total 5,600 applications that are devised for Apple Watch is related to gaming. This shows that this platform is a great opportunity for developers for developing gaming application that can boost sales and downloads.

On the other and, certain developers are still skeptical regarding this product's future in gaming. These skeptics believe that they would be required to consider the broader implications regarding an app that holds onto users and ensures engagement along with road hazards and safety of consumers.

The fan of Watch apps have more good in store for them and a lot more to anticipate during the company’s annual World Wide Developers Conference (WWDC), which is almost ready to happen. Apple is likely to come up with a Tool Kit that will help developers to come up with their own apps for this product.

Developers at this point are most likely to design such Watch apps that are perfect for a screen sized 38 by 42 millimeters. Likewise the Runeblade developers, a popular fantasy game have modified the features of the game so that they can easily move from actual gaming to that decision that impacts the game story line in the long run.

The developers start need to take the gaming aspect of this apple product seriously as this is the relatively great platform to ensure monetary developments. Once the World Wide Developers Conference (WWDC) is over, the developers will have more option to play around.