Monday, December 26, 2016

Why Apple Watch will soon become cheaper. And much

The best news of the second half of December - Apple launched the sale of reconditioned Watch. If we discard the snobbishness and read the gadget is almost new, it turns out that now the lower plate for the most versatile smart watches on the market - 230 dollars.
But even in this situation do not hurry to run to the counter. Believe me: soon everything will be even steeper.

Почему Apple Watch скоро подешевеют. Причем сильно


Apple forced to drop the price tags on the Watch, and here's why:
1. wearable market dipped nightmare. It went against all expectations: instead of explosive growth, analysts at IDC recorded a failure - the market fell by 52% in the third quarter of 2016.
The failure could be attributed to incorrect calculations, but you need to face the facts: Motorola turned bench with Moto 360, Pebble and covered himself and joined the FitBit (they also still sadly).
General background - very negative. To successfully sell watches, you need to cut prices.
2. Apple Watch are sold simply disgusting. The only one who does not agree with this - Tim Cook. He still everything is fine, and Christmas sales hit record.
In fact, the situation is different: the same guys from IDC signaled that Watch deliveries fell by more than three times a year. The same pattern also reflects the company's quarterly report, where the column "Other" (there are and Watch) takes five miserable percent.
I am far from those who blindly believe the news about the product cost and yelling that the iPhone should cost $ 200, and we were all deceived. But foolish to argue with the fact that the Watch - high-margin products.
Their cost price - about a hundred dollars, and a minimum price tag is much higher.
So, if you push off from the parameters of the quarterly report, it will be apparent that the clock brought a tiny profit. Conclusion: they do little to sell. The way to increase sales is only one - through the Discount.
3. Apple can make a luxury watch. Steel Apple Watch, Watch Edition and branded lanyards reduce the price tag on the aluminum clock.
Make a discount on all models is not necessary: ​​just need to lower the bar for the whole world to see - yes, Apple Watch officially can be purchased for $ 199. By the way, in Cupertino have already used this technique in March 2016 349 $ to the applause of journalists have turned into $ 299.
4. The average bill in the industry falls. In 2014, at the peak of demand, the average smart watch worth $ 189 (study based on 6.8 million devices). By 2015, people are smarter and realized that it is more logical to buy a fitness-bracelets: they also consider steps calories (and some - pulse) and also vibrate on notifications, but are much cheaper and at times hold a charge longer.
Therefore, Apple Watch is competing not only with conventional Samsung Gear, how many trackers with Xiaomi and other devices within the 100 (and sometimes 50) dollars. Keeping the price of 250-270 dollars in such an environment is simply naive.
5. Watch already old and new will come out soon. First, Jony Ive, makes the design of the current generation, busy with some global projects (say it all may soon leave the company). Second, Apple updates the clock every two years, rather than once a year.
Prerequisites to the fact that this schedule change, no. Consequently, in 2017 the model will be sold with a design of 2014. It must be cheaper, as the iPhone 5s in due time.
Apple can boast of plenty of outstanding sales and pretend Watch - a fashion accessory, but the truth does not leave the vast majority of the target audience does not use anything other than notifications and sports applications.
In the current environment, the aluminum gadget for these tasks can not cost more than $ 200 - expect a discount in the first half of 2017.
Another small prediction: I am sure that in the coming year Apple will release an application for the Watch under Android. Perhaps there will not be available all the functions, but such software must appear - it is the most reasonable way to instantly boost sales hours.

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