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I was looking at the SS but I don't want cellular.
You can buy the SS but never activate the cellular.
If you plan on using the Watch for more than a year, then I’d recommend the SS.
It's a tough call between SS and Al.
My guess is, it's a marketing ploy to put higher price on SS model.
No matter how you slice it, I cannot think of any significant difference in the cost of material and manufacturing cost for these two materials in this tiny application.
These parts are probably stamped, perhaps even using the same die. Dies are fairly expensive and I cannot think Apple use two different dies for these materials.
Same cost, but a huge difference in selling price, hence far more profit by hyping SS model.
Now, re material strength, SS is obviously far stronger. Assuming the thickness of SS and Al models is the same, then the thickness of the housing is assumed to be same. If so, there is a possibility that Al case, under certain conditions wherein some excessive pressure is applied inadvertently, it might dent in, or distorted (very unlikely for such a tiny housing with ribs), damaging the internals or permanently deform the watch. In normal wearing, I would suppose the possibility of such accident is close to nil (what is something small is placed underneath the watch, and somone accidentally pressed on it).
But there is a reason why decent (traditional) watch never uses aluminum housing.
You didn't address the difference in glass, which is different between the two watches. That would make up some of the difference between the aluminum and stainless steel as well, since I think you're right, the material cost between aluminum and steel is different but we don't really know the manufacturing. Cost of the glass would likely be the contributing factor.
My bad Robert, I did not know the difference glass materials are used. I will think about it.
I thought the OP's question was SS vs. AI material, not SS vs. AI models.
Many people pay attention to the aesthetic (fashion statement) of SS model too.
In any case, I cannot think of any appreciable difference in material/production cost between two different glass materials.