Does Apple Watch Have a Big Pricing Problem?

Does Apple Watch Have a Big Pricing Problem?→

Maybe, but I’ll place my bets on the dolks in Cupertino knowing what they’re doing.

Third, the price range is extremely wide — in fact, it’s too wide, and that’s a big mistake. It’s rare for one brand to serve such a wide spectrum of customers – in the Watch’s case, $349 (somewhat accessible) to $17,000 (garishly expensive). Timex, for instance, targets the lower price range in the watch market while Rolex serves the high end.

The downside of this wide price range, from a brand perspective, is further complicated by the technology component of the Watch. When consumers see prices ranging up to $17,000, they tend to psychologically believe they’ll have to spend somewhere around the midpoint (say, $8,000) to get a “good one” (from a technology standpoint). The reality is the Watch’s technical performance is the same no matter what the price — the price differential is based on the various metals and adornments – -but this truth is obfuscated by the wide price range.

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