Apple Watch Sales Estimated at 2.79 Million, $49 Sport Band Said to Cost Apple $2.05

Apple Watch Sales Estimated at 2.79 Million, $49 Sport Band Said to Cost Apple $2.05

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New data from Slice Intelligence estimates Apple Watch sales at 2.79 million thus far, reports Reuters.

Notably, about 17% of buyers are believed to have purchased a spare band, which are very profitable for Apple, says IHS.

Although the entry-level sports band retails for $49, it costs only about $2.05 to make, according to an analysis of the 38-millimeter size by IHS, a technology research firm. The estimates do not include expenses such as packaging and shipping and may not capture the full cost of the material Apple uses to make the band, said analyst Kevin Keller of IHS.

Apple Watch Sales Estimated at 2.79 Million, $49 Sport Band Said to Cost Apple $2.05

The situation is compared to the razor-blade business model in which the product is sold for a modest price and much of the profits are gained from the sale of accessories. "Of course, because it's Apple, it's sell the razor, sell the blade," Keller joked.

The black sport band is said to be the most popular choice of band for customers. Interestingly, the $149 Milanese loop is the second most popular spare second band, indicating the customers want one band that is more casual and another that is more formal.

"People are trying to get two watches in one," said Kanishka Agarwal, Slice's chief data officer.

Notably, Apple recently launched a 'Made for Apple Watch' program, enabling manufacturers to create approved third-party bands for the new smartwatch. You can learn more about that here.

If you purchased more than one band, let us know which ones you chose in the comments!

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Apple Watch Sales Estimated at 2.79 Million, $49 Sport Band Said to Cost Apple $2.05
bigjiba - June 20, 2015 at 4:00am
everyone knows it severely overpriced. the xiaomi fit band has a similar rubber band with a machined aluminum parts. it's made in china. the materials are cheap. of course it's 2 bucks to make. i hope there are some third parties later. i'm still waiting on the next generation and saving my scratch for this year upcoming iPhone (should be a good upgrade). WE ALL KNOW THAT APPLE TRICKLES OUT THEIR INNOVATION. i know for sure that they can offer more for the apple watch but they like to release the features slowly otherwise they would run out of ideas. BLAME IT ON APPLE BEING A PUBLIC SHARED COMPANY. shareholders are aholes. miss steve jobs that rather change the world and become a legend than just make some quick profit and answer to share holders and short term thinkers.
Flozz - June 20, 2015 at 12:29pm
Steve jobs is always here dead or alive. Never forget it! All that matters is Apple keeps up with the demand and hard work, and in terms of that, it's still rising as every keynote is mentioning.
Sona - June 19, 2015 at 10:21pm
Keep in mind its not "normal" for
Sona - June 19, 2015 at 10:24pm
Any wqtch bands to degrade within few days(even 1 day of use from alot of reviews). By meaning degrades, it shows ignificant color shifting spots on the band which explains how cheaply these bands were made. Still no words from Apple even these problems were shown since day 1 of the launch. So far degrading spots on my Apple watch is underneath where its hard to see. But still it sucks to knowing that i paid several hundreds of dollars and the quality is terrible
Suna - June 20, 2015 at 1:44am
Want mine? I use without a problem. I take care of it too easily and never fails me!
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