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.
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!