Apple mulling $400 price point for wearable device

By , Aug 30, 2014

iwatch rolex 2

Re/code journalists Dawn Chmielewski and John Paczkowski filed a report today claiming that Apple executives internally discussed a price point of $400 for a rumored wearable device, which is believed to be making its debut alongside new iPhones at Apple’s upcoming media event scheduled for Tuesday, September 9, at the Flint Center for the Performing Arts in Cupertino.

But cash-strapped would-be buyers needn’t worry — the firm apparently has a lower-priced version of the device and consumers can expect “a range of prices for different models,” as per Re/code’s unnamed sources.

Chmielewski and Paczkowski clarify that Apple may not be able to settle on the final price in time for the September 9 unveiling.

At first blush, $400 seems a little steep given smartwatches from Samsung, LG and others cost less. For example, Samsung’s Gear 2 Silver retails for about $300 and most Android-powered smartwatches are in the $200 range.

On the high-end, Timex’s upcoming Ironman One GPS+ watch, which includes 3G wireless connection, will carry a $400 price tag.

On the other hand, we do not know for a fact whether the so-called iWatch is just a smartwatch or a fitness/health-focused device.

iWatch concept (Home, Todd Hamilton 001)

By comparison, high-end consumer fitness accessories typically sell in the $100-$200 range, depending on the manufacturer and model.

Truth be told, if anyone can get away with charging a premium for an integrated experience that “just works,” it’s the Cupertino firm.

Rivals frequently slam Apple for its supposedly overpriced products, though this doesn’t tell the whole truth as critics purposefully disregard the value of Apple’s seamless integration and delightful experiences, as if intangible qualities don’t matter.

Motorola Moto 360 (Metal 001)
Motorola’s Moto 360 will cost $249 when it arrives.

In recent years, however, Apple has actually slashed prices across several product families, including Mac notebooks and iMacs.

That being said, a $400 iWatch could be a tough sell as that price would match the price of the iPad mini with Retina display, which starts out at $400 for the entry-level Wi-Fi-only model with sixteen gigabytes of storage.

If Re/code is right, then the rumored $400 asking price would be presumably for the flagship model, with other models costing less.

Considering that different iPhone and iPad models are largely priced depending on the amount of built-in storage and Wi-Fi/cellular capabilities, it will be interesting seeing how Apple differentiates between differently priced iWatch models.

How much would you pay for an Apple wearable device, assuming it exists?

[Re/code]

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  • http://www.Ihaveasitebutwontsaywhatitis.com Tony

    Lol good luck selling it at 400.00, huge ripoff there. 200.00 is the right price on wearables. Anything higher is not worth it, doesn’t matter how much you pack into it. A tablet, phone, computer will do a lot more for the same price.

    • AppleFanboy

      I don’t think the watch is supposed to replace any of those devices. It will probably compliment them.

      • APPLEFANBOI

        dont steal my name bro

      • Mike

        Exactly, so it shouldn’t cost as much as something that COULD replace them.

    • Matt

      The people that Apple have been hiring lately sort of tell you that it will be pricey. At one point there was a rumour that it will have a “Swiss Made” badge on it and we all clearly know “Swiss Made” watches are luxurious and expensive. This isn’t supposed to be your cheap $150 android watch. It supposed to be a pice of luxury with “smart” technology built in.

  • Juan Genao

    So $900 for a phone and $400 for a watch

  • Khalid Salim

    i say 329$ just like the old ipad mini, but i would like it to be 300$ or less..

  • APPLEFANBOI

    I’ll pay anything for apple products

    • AppleFanboy

      Who are you?

      • APPLEFANBOI

        the real applefanboi

      • AppleFanboy

        I am the real one but i don’t mind sharing, brother.

  • Thiago Vaccaro

    This is ridiculous, first of all, wearables are useless. Why the hell would you wear something in your arm that gives the same info that a Smartphone provides? Small screen, ugly concepts until now, and now Apple wil charge 400 dolars into a watch? Are they Rolex or something? I love Apple with all my heart, but U$400 for a useless watch and U$900 starting price for an iPhone is an absurd. Geez…

    • AppleFanboy

      I remember people criticizing the iPhone’s high price range and I also remember people mocking the iPad. We can only wait and see what ends up coming out of Apple.

    • http://www.Ihaveasitebutwontsaywhatitis.com Tony

      Totally agree! And this is a first gen device which means it’s going to be missing things. And if they assume people are going to upgrade their watch every two years that’s not going to happen.

      • https://twitter.com/MrElectrifyer MrElectrifyer

        “And if they assume people are going to upgrade their watch every two years that’s not going to happen. “

        Never say never. There are tons more iSheeps than you can imagine…

    • John

      “The same information a smartphone provides”
      This clearly coming from someone who has done little research into the wearables market.

      For the last few years, devices like Pebble and Fitbit Flex have allowed uses the convenience to check notifications, incoming calls, and other information they deem important WITHOUT the need to remove your phone from your pocket, bag, or anywhere else you wish to keep your cellular telephone.

      As technology has improved, so has the ability to fit more into watches such as the Mio Alpha that talks to a users smartphone and stores information such as their heart rate without the need of a strap.

      May I suggest you do a little more research before making statements like this again, especially when there is plenty of evidence to refute your claim that watches can do the same things a phone can.

      • Thiago Vaccaro

        Clearly it isn’t just ne that thinks Wearables, Watches specifically, are useless. Again, why would you use something that you already can do on your smartphone? Why pay 400 dollars for something that will give the same features that are already on a Smartphone, i’m refering to Samsung’s watches. Despite not seeing and not knowing much of this iWatch, the only thing i can see it’s possible to provide is the connection with the Health app, and HomeKit. We don’t know what Apple will present to us, but i, and probably many others, don’t see a future in the Smartwatches industry…

      • James Gunaca

        Same was said about iPad: “it’s just a big iPod touch”

      • Thiago Vaccaro

        Sure, but in that time, Apple had Steve Jobs, the visionary. Now they have Cook, which clearly is not half a leader, visionary and innovator like Jobs was.

      • ishyg

        But what if this wearable was a brainchild of Jobs?

      • Thiago Vaccaro

        Now we’re talking…

  • R4

    Wow, you guys are complaining? Apple devices cost like 50% more in the UK. We’re the ones who are supposed to be complaining.

    • Donovan

      Yea they just change the “$” sign in a “£” sign. They do that with Euros too, alltho you Brits get ripped off the most.

      • Nick Jones

        don’t think apple is one ripping you off, it’a the crazy high import taxes in UK. If you have to pay about 26£ import taxes on something worth 100,thats why it’s so much more expensive

  • iBanks

    $400? Yup! I’d buy one.

  • Donovan

    But, will this include a free Lockscreen-bug? They are keen on giving us those.

  • Jason B

    $400 seems high, but then again, could actually be considered cheap…

    If it has sapphire glass and a metal band like titanium or stainless steel, then that could be considered a more premium watch. Watches that come with a sapphire glass are generally higher end watches, and you’d be hard pressed to find one under $400.

    • Rowan09

      I agree $400 is for the premium model and no one knows what that means. Just hearing a price of $400 doesn’t always mean it’s expensive. If someone is selling a Rolex or Movado for $400 that’s very cheap, so it matters what you’re paying for if you ask me.

  • jose carlos

    If they do a 400 price they be basicly laughing at customer.That they can sell anything and put any price even if its not worth it.It’s an accessorie not phone.

  • Chris Gaunt

    So this is either genius or dumb to say, but google Seiko, Citzen, Rolex, or any other ‘name brand’ watch. Look at the price tag and then look at the features. Then report back. Just saying.

  • rockarollr

    $299 is the ‘magic’ price point that needs to be met in order to be hugely successful. It’s high enough to have a bit of a margin for the company and its shareholders, yet low enough at first glance so that it doesn’t scare away consumers from the get go. It then seems like a value to everyone involved.

    Make the entry price point $299, Apple, and your new, amazing, wearable device will seemingly grow wings and fly off of shelves. Your starting customer base is only… every iPhone user in the world. Then there are all of the other people you can win over with the quality and usefulness of the product (assuming it ends up being an amazing device!) as well as its reasonable price point. All of those customers… there for the taking. Go get ‘em.

  • James Allen

    I have a Tag watch that cost more then $400. there are a lot of other watch makers that make watch that cost more then $400. And all mine does as the rest of the watcher makers watches do is. Tell time and date. So paying for a iwatch if that’s what they will call it. Would do a lot more then just telling time.

  • TeChNoStyLeZ

    400$ for a smartwatch ?

  • DrNoOne

    Let me just remind you: Right before the iPad’s unveiling, rumors about $1000 pricepoints started floating around. The result was that when the price was revealed to be $499 everyone was impressed about the “low” price, which in fact allowed Apple their usual comfortable profit margin.

    I think the same game is played here. It is an effect on the brain called “anchoring”. If the first price you hear in relation to a product is $400, that becomes the baseline. If then the product is revealed to cost $300, you are pleasantly surprised. If you were expecting to pay $250 on the other hand, you might feel cheated and decide not to buy one. Additionally, giving you the opportunity to buy a product that you internally value at $400 for “just” $300 might actually prompt you to buy it as it registers emotionally as a discount.

  • https://twitter.com/MrElectrifyer MrElectrifyer

    Guaranteed to be stupidly overpriced…

  • thomas

    the iwatch is going to be bigger than the iPad watch

  • mav3rick

    Good that the “unapologetic plastic” will have a successor…

  • Ishaan Malhotra

    $300 is the max im gonna spend on a watch