A new report claims that Apple has sold 2.79m Apple Watches since it launched the product only two months ago, with the Sport band – the cheapest band in the range, selling for US$49 – costing the company just US$2.05 to manufacture.
Slice Intelligence’s latest findings, coupled with research company IHS’ costings, shows how Apple has turned its smart watch into a remarkably profitable piece of business, according to Reuters.
The volume of devices shifted in the Apple Watch sales figures is not all, though, with accessories – Apple’s signature marketplace – bulking up the company’s returns.
“People are trying to get two watches in one,” said Kanishka Agarwal, Slice’s chief data officer, when discussing the sale of supplementary bands to pair up with the smart watch.
The cost of bands is quite vast, with the lower end US$49 models complemented by others that rise to US$149 for the leather loop and US$449 for the stainless steel bracelet.
Apple Watch sales figures are impressive
When added to, say, the entry-level Sport Watch (US$349), which is the most popular device in the range, it’s clear where the success story lies.
Slice studied e-mail receipts from a panel of two million people representative of online shoppers in the US, more than 20,000 of whom bought an Apple Watch, claims Reuters.“Data from Slice, which analysed only bands made and sold by Apple, showed about 17pc of shoppers purchased more than one band.”
“Data from Slice, which analysed only bands made and sold by Apple, showed about 17pc of shoppers purchased more than one band.”
Last month, IHS claimed that the total bill of materials used in the Apple Watch Sport 38mm cost US$81.20, with an additional US$2.50 manufacturing expense on top. That’s below 25pc of its retail price, which is mightily impressive.
IHS only looks at the components, not taking into account other, often extensive, expenses such as R&D, logistics, software and licensing.
Apple Watch image, via Shutterstock