Can the hottest golden version of applewatch help

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How much money can the Golden Apple watch help Apple make

Apple finally announced the price details of its smart watch Apple watch, including the gold edition of Apple watch. In the United States, this watch sells for $10000 (£ 8000 in the UK). The ultra high-end Apple smart watch sells for $17000

what is the real cost of Apple manufacturing the Golden Apple watch that may solve some of the problems that cause this weather? How much money can Apple make? Understandably, Apple will not be in a hurry to release these data, but we can estimate the cost of Apple watch by splitting it. The Golden Apple watch is mainly composed of three parts:

1.55 grams of 18K Gold: at today's prices, the price of these gold is about $1550, driving the development of high-tech industries

2. Cost of the watch itself: the apple watch with a white Sports Strap costs about $549 (the $10000 gold apple watch is also equipped with a white strap)

3. Production cost: this part is difficult to evaluate. Please remember that the cost of producing ordinary watches has been included in the working clock range of iokh211mh2 (typical value is 640kHz); ② The resolution is 8-bit binary code of $549. The additional cost of the Golden Apple watch can be derived from the added gold, but given the complex working conditions of the materials and the production scale of apple, it seems unlikely that gold will account for too much of the cost

add up the cost of gold, the cost of the watch itself and the production cost of $100 per watch, and the cost of the Golden Apple watch is $2200. Together with the costs of transportation, marketing and sales, as well as the markup to reach the target country, these all add up to 354% of the cost mark up of the Golden Apple watch. That is to say, the Golden Apple watch must sell for at least $7800 before Apple can make a profit

but in fact, the cost of producing the Golden Apple watch is much lower than this. Forbes magazine once reported that the gold content added in the gold version of Apple watch is far below the 18K gold standard, and its gold cost is estimated to be only $640. This is because Apple has a patent for metal composites. Generally, the gold material is mainly 18K gold mixed with silver and copper. However, in Apple's ceramic composites, less gold is used, and ceramics are far cheaper than other metals. This means that $1550 worth of gold used in the Golden Apple watch is overvalued. If it is reduced to $1000, the cost plus rate of the Golden Apple watch will reach 500%

in fact, the cost plus rate may be higher than this figure. After all, apple watch, the $549 basic version of Apple watch, has already made some profits. The incredible profitability of the Golden Apple watch means that even if the sales proportion of the Golden Apple watch increases only a little, the overall profit of the apple watch will increase significantly. Morgan Stanley analysts speculate that if the Golden Apple watch can account for 1% of the Swiss luxury watch market, other apple watches will be classified as low-end products. The ASP of Apple watch in the first 12 months of sale is $618, 37% higher than our estimate of $450

investment bank Goldman Sachs also believes that if Apple's Golden Apple watch accounts for more than 1% of sales, Apple's profits will be higher. They predict that Apple's revenue will increase by 27% and its gross profit will increase by 66% in 12 months

Apple products have always been known for their rich profits. The cost of producing iPhone accounts for only 1/4 of its final price, but this does not include marketing and sales costs. The Golden Apple watch seems to be another example. Even if the costs of production, marketing and sales are included, they account for less than 20% of the selling price of Apple products

for most people who want to buy the Golden Apple watch, how much profit apple can make is not their concern. The cost of various parts of such products is far less important than the Veblen effect. The theory put forward by American economist Veblen believes that the higher the commodity price is, the better it will sell. This may be contrary to the normal supply-demand curve you expect, because usually the higher the price, the lower the demand

for this reason, when you find that Apple starts selling watches for $10000, you will definitely think it is very crazy. Because all companies are trying to create demand, and they are very happy to meet this supply

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