Apple makes lots of profit from watch bands
Apple has been making lots of money from Apple watch buyers, and it is around 20 percent of them spending their extra couple of dollars for the watch bands.
Slice Intelligence — a research firm that mines e-mail receipts, they have data that gives proof to Apple’s money-making run from its new product, the Apple Watch, and its bands as well.
The company has never since disclosed about the numbers of watches they sold in the market already, but Slice Intelligence estimates that the Apple has sold around 2.79 million already as of mid-June.
Let alone speaking about the profits of the watch band, how much more the watch itself is going to make in the industry is yet to see since it is just the beginning of its generation.
The entry-level sports band suggested retail price is $49, but the 38-millimeter band actually cost only around $2.05 to make, according to IHS — a technology research firm. Of course, the estimated cost doesn’t include the packaging and the shipping fees, which may not be able to get the full estimate of the materials that Apple uses to make its watch band, cited by IHS analyst Kevin Keller.
According to Keller, the watch has made its ground on the industry, now it is no doubt that Apple is making more profit from the watch accessories as well.
Slice’s research indicates that from the representatives of 2 million e-mail receipts it has from watch shoppers, more than 20,000 of them bought an Apple Watch. Data from Slice says so much about how much the accessory is making for the company, the data also shows that around 17 percent of watch buyers bought more than just 1 band.
Slice cited that its data is closely matched with the Department of Commerce and Amazon’s sales data information.
Among all the sports bands, the black one is the most popular that comes with the device, plus it is extra ordered by customers.
Overall, Apple has proved that it is only strong on the technical side, but on the fashion side as well. Nowadays, Apple watch users will probably buy even more bands to fit it with their fashion style day by day.