The smart watch band seems to be the apple of Apple’s eye as the brand is raking in good money by selling Apple Watch bands. According to reports from Slice Intelligence, a research firm that compiles e-mail receipts, Apple Watch buyers, once they buy the coveted timepiece, shell out more on accessories, which largely include watch bands.
It has been observed by the firm that around 20 percent of Apple Watch buyers shopped more than one band.
However, there have been no confirmed reports from the brand itself as Apple always wants to keep everything secret. Slice Intelligence releases data based on estimates that Apple has sold out 2.79 million smart watches as of mid-June.
To guesstimate the profit made by Apple from its watch band, IHS, a technology research firm, did an analysis of the 38-millimeter Apple Watch. The firm made claims that the entry-level sports band (which is available at $49) is made at the cost of just $2.05.
This analysis doesn’t include the cost of packaging and shipping; the firm also adds that it is difficult to gauge full cost of material Apple uses to manufacture the band.
Experts in branding give credit to Apple’s razor-blade business model, in which companies sell a product for a decent price and make profits by selling accessories.
On consumer preferences, Slice reveals that people are much after black sport band; and the second most popular band is Milanese loop, which has a price tag of $149.
But why this fondness for two bands for a single watch? Reason is crystal clear; people want two watches in one. With two different bands, they can easily swap each other at different places. For example, a fitness freak would always keep an extra rubber band for gym, and a leather band for his office, where he may have to attend meetings and meet clients.
Moreover, fashion-forward consumers wish to match the watch to their apparels and therefore, they are ready to spend more on accessories like watch bands.
The bottom line is that Apple wants to make more profits from its smart watch. Consumers would never like to change their communication gadgets frequently. If brands want to reach out to the deep pockets of consumers, selling of accessories is the best way. And Apple knows it!