1. Carjackd's Avatar
    I don't know for sure, but if I had to guess, I would say Apple is probably the only company making money on Smartwatches. I don't see how anyone else would be. Maybe Samsung, but I have not heard how well their watches are selling. They are nice, but I don't think they have the appeal of the Apple Watch and certainly not the 3rd party support.
    It may even be a loss leader for them too as they continue to grab market share as smart watches (in a most cases ) are in the early adoption stages. It's been a long process to get consumers to adopt
    05-10-2017 10:24 AM
  2. cwbcpa's Avatar
    It may even be a loss leader for them too as they continue to grab market share as smart watches (in a most cases ) are in the early adoption stages. It's been a long process to get consumers to adopt
    Maybe. I don't know how much some of the others are even selling for. I had a Samsung S2 and I think I paid around $200 for that about a year or so ago. If you can get them out in the public and people actually like them, it's great advertising.
    05-10-2017 10:27 AM
  3. doogald's Avatar
    I heard that Tag Heuer's smartwatch was very successful/profitable for them - so much so that they continued on with a new idea. That's a pretty high-end audience. (I like their idea - originally, a smartwatch that you can trade in for a mechanical watch later on, and now a smartwatch that you can swap in a mechanical movement when you want to.)
    05-10-2017 11:09 AM
  4. tcuprof's Avatar
    Is anyone making any money yet on smart watches tho? However , the device is gaining traction . Seeing more and more smart watches out in the wild
    I'd be shocked if Apple watch was not making BIG money. Apple's not known for selling loss leaders.
    05-10-2017 03:36 PM
  5. rangerdeyo's Avatar
    Apple has the advantage because they control both the hardware and software. All of the other vendors have multiple software and hardware configurations to deal with. Plus they want to make their watches available to iPhone users. Apple isnt concerned with Android users being able to use their watch. Which does cut out a large chunk of the market. Apparently it isnt hurting them too much.
    05-10-2017 03:40 PM
  6. rangerdeyo's Avatar
    I'd be shocked if Apple watch was not making BIG money. Apple's not known for selling loss leaders.
    Agreed. But how often will people upgrade a $400 watch? Especially if they are already upgrading a $600+ phone every two years.
    05-10-2017 03:41 PM
  7. Carjackd's Avatar
    I'd be shocked if Apple watch was not making BIG money. Apple's not known for selling loss leaders.
    Maybe loss leader is not the term I should have used. . Consumers are not grabbing on to smart watches like they have with hand helds and tablets . It's a slower grind but it's getting there. Even if the profits are slim I think Apple is pushing this for hope of what is to come.
    05-10-2017 03:47 PM
  8. tcuprof's Avatar
    Agreed. But how often will people upgrade a $400 watch? Especially if they are already upgrading a $600+ phone every two years.
    I think avid enthusiasts (i.e., everyone at iMore!) will upgrade watches more frequently than iPads.
    Carjackd likes this.
    05-10-2017 03:51 PM
  9. rangerdeyo's Avatar
    I think avid enthusiasts (i.e., everyone at iMore!) will upgrade watches more frequently than iPads.
    I agree. The watch is still a very young product. Who knows what hardware enhancements will come in the next couple of versions.
    05-10-2017 04:11 PM
  10. Carjackd's Avatar
    I think avid enthusiasts (i.e., everyone at iMore!) will upgrade watches more frequently than iPads.
    Everyone is different. Although I haven't jumped on the smart watch band wagon I can say with respect to my phone I dump it as soon as the next one is released . Although some will expect to get numerous years out of a device. The same goes for smart watches ...some want the next big thing
    05-10-2017 07:03 PM
  11. Carjackd's Avatar
    I agree. The watch is still a very young product. Who knows what hardware enhancements will come in the next couple of versions.
    This!
    05-10-2017 08:01 PM
  12. doogald's Avatar
    I think avid enthusiasts (i.e., everyone at iMore!) will upgrade watches more frequently than iPads.
    For me, my plan is to upgrade when Apple stops developing an OS update for my hardware. So, probably close to when I upgrade my iPad.
    05-11-2017 05:34 AM
  13. tcuprof's Avatar
    For me, my plan is to upgrade when Apple stops developing an OS update for my hardware. So, probably close to when I upgrade my iPad.
    My plan is to tell myself I'm not going to upgrade unless the improvements are major. And then, I'm probably going to upgrade regardless.
    05-11-2017 04:46 PM
  14. cwbcpa's Avatar
    My plan is to tell myself I'm not going to upgrade unless the improvements are major. And then, I'm probably going to upgrade regardless.
    Sounds familiar.
    05-11-2017 06:17 PM
  15. Mac Guy's Avatar
    It may even be a loss leader for them
    I don't think Apple buys into the loss leader concept. The closest to that is their practice of giving products to high profile people/shows for product placement.

    They may not be making money on the Watches yet until they've sold xx amount but that's not the same as being a loss leader product. That's the advantage of having significant cachet along with a product they have faith in.
    05-12-2017 01:35 PM
  16. Carjackd's Avatar
    I don't think Apple buys into the loss leader concept. The closest to that is their practice of giving products to high profile people/shows for product placement.

    They may not be making money on the Watches yet until they've sold xx amount but that's not the same as being a loss leader product. That's the advantage of having significant cachet along with a product they have faith in.
    Again, maybe "loss leader" was not the best terms for me to use, but more like Apple is willing to throw whatever they have to at it (which we all know is a wack of cash), as they expect future demand. It's been a slow grind in the smart watch business to get consumers to jump on them.

    The mainstream consumer is not educated enough at this point to understand why they need a smart watch to go along with their phone. Regardless, based on numbers I still don't think anyone is making money on this product YET.
    Last edited by Carjackd; 05-12-2017 at 02:11 PM.
    05-12-2017 01:48 PM
  17. Mac Guy's Avatar
    The mainstream consumer is not educated enough at this point to understand why they need a smart watch to go along with their phone.
    One of Apple's strengths is providing a product whose implementation is such that we didn't know we couldn't live without it. (Broad generalization, so stipulated.)

    Once you use it, you wonder 'How did I ever get on before? I was living like an animal!' But a hurdle to trying said product is almost always cost. There are a lot of reasons why somebody doesn't want one, but at the end of the day, I think most potential customers get cost-blocked.

    One of the first questions is 'How much' and the answer invokes the consumer version of flight or fight, which is often buy or bash.

    Power windows were once an extra cost option. 'One more thing to go wrong/for that money I can roll up my own windows' and my favorite 'power windows are for lazy people!!' detractors would say. Once it became standard equipment, I doubt many wanted to delete them. Who wants to go back to using hand signals while driving. How many know the three correct ones? Most only know one that isn't one of the three!
    05-12-2017 03:37 PM
  18. Carjackd's Avatar
    One of Apple's strengths is providing a product whose implementation is such that we didn't know we couldn't live without it. (Broad generalization, so stipulated.)

    Once you use it, you wonder 'How did I ever get on before? I was living like an animal!' But a hurdle to trying said product is almost always cost. There are a lot of reasons why somebody doesn't want one, but at the end of the day, I think most potential customers get cost-blocked.

    One of the first questions is 'How much' and the answer invokes the consumer version of flight or fight, which is often buy or bash.

    Power windows were once an extra cost option. 'One more thing to go wrong/for that money I can roll up my own windows' and my favorite 'power windows are for lazy people!!' detractors would say. Once it became standard equipment, I doubt many wanted to delete them. Who wants to go back to using hand signals while driving. How many know the three correct ones? Most only know one that isn't one of the three!
    Ya cost is always a factor..but once this product (smart watches in general) takes off its gunna go hard!
    05-12-2017 05:41 PM
43 12

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