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Apple Watch by the (unofficial) numbers: 2.79 million sold, massive profit margin on Sport bands

By Shawn Knight
Jun 18, 2015
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  1. apple watch apple bill of materials smartwatch

    Apple has yet to reveal how many Apple Watches it has sold but that doesn’t mean reliable data isn’t out there. Digital commerce research firm Slice Intelligence estimates that as of mid-June, Apple has sold 2.79 million smartwatches since its launch less than two months ago.

    In comparison, manufacturers collectively shipped just 720,000 Android Wear devices through the end of last year.

    We already know that the Apple Watch has the best profit margin of any Apple product. It’s also the first to include an interchangeable component, the wrist band, which according to technology research firm IHS, is a massive cash cow in its own right.

    apple watch apple bill of materials smartwatch

    Slice Intelligence estimates that about 17 percent of people that purchased an Apple Watch also bought extra band(s). The entry-level sports band retails for $49 which IHS estimates costs Apple just $2.05 to make. That estimate doesn’t include the cost of packaging and shipping but even still, it’s clear that Apple is making a hefty profit on each band sold.

    Slice Intelligence Chief Data Officer Kanishka Agarwal said the black sport band is the most popular choice both for bands sold with the Apple Watch and separate purchases. Apple’s $149 Milanese loop band is the second most popular choice, suggesting many buyers are interested in both a practical sports band and a more luxurious option.

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  2. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 6,476   +2,034

    That's probably because the wrist strap is most interesting and functional part of that whole contraption.
     
    Hexic and p51d007 like this.
  3. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 2,750   +1,105

    Yes, they are, but this is Apple we're talking about...
    Instead of just calling the profit 'massive' (a word that was past it's internet prime a couple years ago) Could you provide some perspective? What's the profit margin on other accessories? I'll bet the margin on wall chargers is equally large, while the margin on lightning adapters may be even bigger.

    The real surprising thing about a high margin on wrist straps is how simple a function they provide. You cant' exactly go out and make your own lightning adapter or substitute something else for one. But a wrist strap?! that's not proprietary technology, Apple! Stop trying to make people think your stuff is worth more just because the price is high!
    I'll bet an Apple car sticker costs $10.
     
    fimbles likes this.
  4. p51d007

    p51d007 TS Evangelist Posts: 908   +384

    And the anti anything profit crowd...quiet as usual. Apple makes billions "off the backs of slave labor" as they say, but nope, not even a whimper out of the 1%er crowd. But, let "big oil", "big pharma" or another corporation make a dime profit, and "the outrage" from the anti corp bunch.
     
    Bubbajim and cliffordcooley like this.
  5. I swear to god, when I enter an apple store I feel insulted by the prices, really insulted like "hey you look stupid, how about 40 bucks for a cover, 30 for a cable?"
     

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