Apple is preparing to take some pages out of the traditional jewelry store playbook. For the upcoming 18-karat gold Apple Watch Edition, Apple is planning several new features for its retail stores to support the device. As we reported several months ago, Apple is planning on allowing customers to actually try on the watches and test out different band styles inside of stores. With the high-expected price tag of the gold watch models, Apple will also step up its security features for stores…
Apple will outfit its official retail stores with safes to house the more expensive, gold “Edition” variants of the upcoming Apple Watch, according to sources. The safes will likely be used to carry both to-be-sold inventory as well as to store demo units from the show floor overnight. The custom-designed safes will be outfitted with Apple Watch MagSafe chargers in order to keep the demo units charged up and ready to go for the next day of business. Apple has already begun installing the safes in some stores ahead of the Apple Watch’s expected release in April…
Earlier this week, 9to5‘s Jeremy Horwitz explained that the Apple Watch Edition will likely have a special sales process, due to its high price, that differentiates it from the less-expensive stainless steel and aluminum models. Sources also say that Apple is getting ready to re-organize Apple Store shelving areas to make room for Apple Watch display tables. Apple is also working on ways to allow prospective buyers to try on Apple Watches inside of the store and play around with different band material and color options.
Apple is also working on special weight scales for its retail stores to weigh the amount of gold in individual Apple Watch Edition variants. The scales will be used to weigh the amount of gold in Apple Watch Editions upon replacement or return. Apple wants to ensure that no gold is removed from the units prior to replacement/return as the gold material is worth a substantial amount of money on secondary markets. The fact that Apple is working on scales further indicates that there will be a notable amount of gold in the Watch and that the device will be pricey.
While the aluminum and glass Apple Watch Sport will start at $349, earlier reports have claimed that the Apple Watch Edition will be priced in the range of thousands of dollars. With that high price tag, combined with materials such as gold, it is important for Apple to take a page out of jewelry store mechanics and ensure that Apple Watches are safely housed prior to sale. In mid-February, Apple will begin sending a pair of Apple Store employees from many of its stores to training sessions in both Cupertino, California and Austin, Texas to learn about the Apple Watch’s functionality.
Apple Stores will also begin moving over to brand new shirts for employees on February 2nd. The new look is more elegant with collars, which matches up nicely with the fashion appeal and pricing of Apple’s upcoming watches.
Story updated Feb. 2 with more details on trying on the Watch as well as information about the gold weight scale systems.
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hmm.. centered is better ,not a big change
These gold watches must be very expensive … $1499?
Try $4,999 or even $9,999. They’re going to be pretty exclusive.
for a WATCH‽ That’s like top of the line Mac Pro money!
> for a WATCH‽ That’s like top of the line Mac Pro money!
It’s literally made of solid gold. Just the price of the gold is going to put it in the thousands.
Gold watches have nowhere near $10K worth of gold. Assuming the Apple Edition watch has about an ounce of gold, that will account for about $1200 worth at today’s prices.
Not gonna happen. The markup isn’t going to be THAT much. You guys are blowing this way out of proportion. Pretty sure it’s going to top out at $1500. Anything more would be absurd even for Apple.
No really, it honestly depends on whether these are “gold plated” or solid gold. All you need to do is to realize that the price of gold is something close to $1300 an once. If these watches are solid gold, the price could very easily be 5K to 10K range.
@cjt3007 YES just for a watch. Because it’s a luxury/jewellery fashion item. Just like Rolex, Cartier and Gucci. Thousands of dollars because it’s fashionable and luxurious. It’s not because it’s a watch.
Plus Watch does a lot more than just tell time so it’s in some way better than the large brands.
According to John Gruber:
“There should be no confusion on that last part. The Apple Watch Edition is solid 18-karat gold, not gold-plated. I confirmed this with Apple last week. “
You see, the thing is, why would anyone pay that money for a smart watch that’s probably gonna be updated with new features on technology in a year or 2. So your telling me, my $1500 watch will be obsolete in a year or 2? I find it very very hard to shell out that kinda cash for something that will be updated in the near future. Sport watch for me
@Leon NoLong Talking James:
Some are speculating – and I tend to agree – that the internals of the watch will be upgradeable. Everything from the logic board to battery to the sensor plate on the backside. It’ll probably cost a couple hundred dollars, but at least you’ll be able to keep your watch up to date if you want.
The Apple watch has a new chip architecture, The Apple S1: “An entire computer architecture on a single chip…the custom-designed chip at the heart of Apple Watch. No traditional computer architecture could fit within such a confined space. So we found a way to integrate many subsystems into one remarkably compact module, which is then completely encapsulated in resin to protect the electronics from the elements, impact, and wear. Configuring an entire computer system on a single chip is an industry first and represents a singular feat of engineering and miniaturization.”
You will be able to upgrade to an S2, S3, S4…it may even be included in the price.
You can easily pay $100,000 for a solid gold Swiss watch; so in this case a $10,000 cost is not at all impossible.
While it’s not impossible that the edition will cost that much I don’t find this argument particularly compelling. I think the first issue that needs to be addressed is that fact that those extremely expensive gold swiss watches that you mention are hand crafted extremely complex devices that are designed to last a lifetime.
The apple watch on the other hand is a piece of technology. This means two things; firstly that the cost of production for the edition only varies from the sport insofar as they use different materials, and secondly that it is a device that will be upgraded every few years.
This has a few implications for how, I believe, apple will price the edition. We know that the apple watch sport can be sold for $350 at significant margins. I would be flabbergasted if it cost more than $50 to produce. We also know that the gold in the edition is probably only worth about $600-$700. So the edition probably only cost ~$750 to produce.
With that knowledge let’s compare two possible price points; $1500 and $5000. The margin for the $1500 watch would be $750, and for the $5000 watch it would be $4,250. This means that the more expensive watch yield 5.67x the margin of the cheaper watch.
This may sound like a large difference but all it really means is that they $1500 watch would have to sell in 5.67x the number of a $5000 to be equally as profitable. I really don’t think that’s much of a stretch considering that the people who would normally consider buying a watch upwards of $5000 may be much more hesitant with regards to a piece of technology that would be replaced often.
To make it a bit more concrete apple is expected to sell 10.8 million watches in 2015. Even if the edition were $1500 I would only expect it to sell a very small percentage of that, let’s say 1%. At higher prices like $5000 I would expect something more like .1%, or even .01%, but even if were generous and say a $5000 edition would sell at .1% of the total watch sales, apple would be loosing something like $32.5 million over the course of the year by going with the higher price.
While this would only represent a ~1% loss of the total apple watch margins I don’t think they would be happy to lose that money expecially considering that the production lines for the gold case, and other bits of the edition probably have some associated cost that apple needs to meet.
So I’m not saying you’re wrong necessarily. I simply feel that this a more robust way of thinking about the problem.
There is a Patek Philippe Calatrava on eBay right now at over $47,000 – possibly with similar amount of gold to the Apple watch – and that is not even the most expensive gold watch seen there. So don’t bet on anything like $1,500 – it may be a LOT more !
Apple is positioning this as jewelry. I’m not aware of any 18-karat gold (not gold plated) watches selling for $1500.
The important question is whether or not the safe can be opened using Touch ID.
much easier to steal once it’s on the wrist of the douche bag who buys it.
Ha. Who are you to judge douchiness?
Stick em up! I want your watch, phone and wallet!
What’s this wallet you talk about¿
I believe the Apple Watch will come with a anti-theft feature. Whenever you raise your hands over your head for more than two sec, it’ll automatically dial 911, and give the perpetrator an electric buzz when taken of – also Siri will read the Miranda rights.
(No, this is not a serious post)
You do realize that wallets and watches have been stolen for decades. It is phone theft which is the new idea.
I’ll be waiting for you.
Actually, since the Apple Watch doesn’t have it’s own GPS, once it’s off the wrist, it will be lost forever and untraceable, so the GOLD watches will indeed be something that the criminals will target. It’s likely that the Apple watch will be “unpairable” or some such with a new device and thus useless as a watch after it is stolen, but the melt value of the Gold versions will make them very popular with thieves.
I can already see the increased Apple store heists and muggings reported on CNN.
So when this rumour doesn’t pan out either, I’m assuming it’ll be because Tim Cook follows Mark Gurman’s reports?
Just kidding – this is probably the most likely of recent rumours. Still, the release date is not in March as Gurman said, so his sources should be taken with a grain of salt.
In Tim’s earnings call, he said the Apple Watches would be ready to ship in April. So, they could still release it in March for pre-orders and the likes like they have for almost everything else they have ever released.
That may be – I just want to caution people from going crazy from these Gurman reports, just as people should avoid going crazy over Ming Chi Kuo reports. They have gotten several major things wrong in the last couple of years. Treat rumours as rumours rather than fact.
@ repentantgamer: Mark Gurman only said March, because to any sane person “early 2015” pretty much cuts off at the end of March. No one knew that Cook would re-define “early 2015” as the end of April, which is actually much closer to “mid-year” than “early” 2015.
That’s besides the point. Are Gurman’s sources accurate? Often, the answer is no (see i.e. his predictions on “Healthbook,” the iPhone 6 screen resolution, and the March release date.)
@repentanantgamer: It’s not beside the point at all, it’s spot on.
You questioned Gurman’s sources on the basis of the date being wrong, and I explained it handily with reference to actual facts. If you want to continue your assertion (and it seems like you do based on your denial response), then the onus is on you to come up with a NEW reason as to why his sources for this might be inaccurate.
Haha, you don’t seem to know what “actual facts” mean. All you did was claim to explain Gurman’s reasoning because “any sane person” would assume that “early 2015” means March. That was not what Gurman said in his earlier report at all – he claimed that his sources told him March. Indeed no one knew that Apple would choose April, least of all you, so don’t try to claim you have facts when you in fact just made another baseless assertion.
And I already have stated facts to prove my assertion that Gurman’s sources are often wrong. In 2014 alone, he claimed that something called “Healthbook” would come out and would look like Passbook. When it turns out the Health app was quite different, he claimed that Apple changed the look entirely because of his leak, which is just kind of sad. He also claimed that the iPhone 6 would have a reduction higher than the 326 dpi that it turned out to be. And now, we see his March prediction was straight up wrong.
Either his speculation as to what “early 2015” meant was wrong, which is understandable, or his so called “sources” are wrong, which means he and you should stop citing them.
Those who make speculations and assertions are the ones that have the burden of proof. If I were to claim that my sources tell me Gazoo Bee is a nose-breathing, mucus-eating, Samsung-using idiot, I should not have the right to ask you to come up with proof against my sources. I should be the one to actually demonstrate the accuracy of my citations. Your statement is still totally besides they point, and pretty tactless.
Why would anyone buy an apple watch for $5000 (example price) that in a year will be upgraded to speedier/slimmer/whatever improvements? I understand paying for the GOLD – it’s jewlery. I just don’t understand paying that much for a piece of electronics. The gold won’t lose its value (well yes it goes up or goes down depending on conditions). But the electronics are devalued I guess immediately since something faster/speedoer/thinner comes along.
If they made it so that next year you could replace the electronics but keep the gold now that would make more sense.
But then again I’m not rich so I’m guessing to them buying one of these is like me buying a bag of hot Cheetos.
Who’s to say Watch will be updated every year enough to justify upgrading? Perhaps it will be more lije the Mac or iPad and not iPhone. And maybe Apple will refresh the band styles to keep a steady stream of income from current watch owners.
Would you ever buy a $9000 watch made by anyone? You aren’t the demographic so don’t worry.
i guess I didn’t make that point clear. Paying $5000 for a REAL watch makes sense to me. But then again it’s a new time and now real watches are these smart watches.
The rich ARE different – knowing nothing about the problems of the poor; and caring even less.
@danmdan … Do you know the problems of the rich? Do you care? Money doesn’t solve everything, everyone has problems. There are some things money can’t buy.
The solution is simple, trade-in.
Apple already does R&R, it doesn’t surprise me that Apple will allow you to trade in your gold watches in a years time and grab a new one for much cheaper.
Apple has been ramping up their in-store trade in program over the last couple of years. Bring in your old iPhone and they give you an amount towards buying the new one. Obviously you tend to get less doing this than if you sold it yourself, but it’s also a lot less hassle.
I’m guessing Apple will do the same thing with the watch. There will probably still be pretty good resale value of the previous gen watch, and if for some reason the resale value isn’t very good they could always sell / recycle the gold.
You, my friend, are not a member (or wannabe member) of the demographic they’re catering to. This is probably a good thing, really.
I agree!!!!!
The issue for Apple is not that there are a select few customers who can afford thousands on an extravagant watch – I personally covet a Panerai watch, which have some models that increase in value with age… The issue for Apple is that those who can afford thousands on a watch will not want to look like complete idiots buying a watch that will be obsolete in a year. Imagine the resale value on those first-gen, solid-gold, Apple watches that need to be charged every two hours….
The most expensive model won’t be more than $1500.
Really? These aren’t gold plated. Your price suggests next to no markup.
This is Apple, not Rolex. Apple knows its customers won’t buy a $2000+ watch.
Apple charges a premium for their products. They’re for sure going to do the same with Watch Edition. Especially if they’re positioning it as jewelry. For all we know they’re going after new customers. Hence why they hired all these fashion execs.
Apple “knows” no such thing about their customers, because Apple is going after a totally new breed of customers–and not just ones from North America!
Apple is considered a luxury brand in many countries. North Americans have known Apple for a good long time, but not in the same way people from around the world do. Apple is dominating luxury brand makes in other countries, and this watch is a definitive foray into the luxury watch market.
Up till now, this hasn’t been the business of Apple for North Americans: it’s been a computer company (only recently dropping “computer” from its name) from the beginning. Apple is not going after previous markets (but it includes them) with the gold watch: it’s going after people that recognize Apple as a luxury brand and want–and most importantly–can afford to participate.
This is a whole new demographic that is going to change everything about how Apple sells products, and to whom they are selling them to.
Apple will probably service a customer’s “System on a Chip” in-store… Drop off your watch, let the Apple Genius swap your old SoC for a new one. The customer only needs to pay for the new computer hardware that they choose to upgrade. You keep your watch and all of the expensive bands in which you have invested while getting all of the best new computing/sensing capabilities Apple cooks up. This is one method many people have speculated and I’d bet on it.
Same thing with all high-end watches. They are all technology. And even the finest watches wear out and you either get it repaired or replaced.
In doubt you would replace a vintage watch say you bought 30 years ago that is now a vintage classic. Even if it didn’t work you’d still wear it. But would you be wearing an electronics piece that’s obsolete in five years? Even if the screen is made out of diamond?
Interesting
I always felt the Grand Central NYC location was odd as there is no way to lock up at night and they are not open 24 either
Someone somewhere will do a runner wearing an Apple watch – get it put on their wrist, someone else to distract the sales person, and zoom, off he/she goes wearing the Watch ! Simples !
New a Rich Doctor at work who had a chunky Rolex strapped on. Asked him if he was worried about it getting pinched. He replied, “not really this is the fake I got in Asia for $12,000 the real thin is at home in the big safe and bolted down.”
That was when I realized I do not belong on this planet, maybe don’t even come from here.
The ipad3 was a good buy.
The Apple Warch in 18 carat gold, simply by its existence raises the value of and desire for the less expensive models and every other Apple product as well.
Apple has seen correctly and no one else seems to get that the “dumb” fashion and luxury watch business is a billion dollar industry. IT IS A WATCH FIRST AND FOREMOST, OH YEAH AND ITS REAL SMART TOO.
The more the gold watch costs the more the wealthy and wana be wealthy will crave it and all other Apple products as well.
Think different!!, think Gucci or Carier or Tiffany.
Indeed; perception is everything.
Gucci, Cartier, Tiffany are expensive because they are classed as luxury brands. They are exclusive. “Normal watches” like these are expensive not only for the material used but also the craftmanship of the actual watch itself.
With all respect, the 18 carat gold AppleWatch will look beautiful and be expensive, but inside it isn’t crafted by artisans – it’s a circuit board.
It doesn’t quite have the same ring to it.
No shit Sherlock
Wow, you look a lot like Jennifer Lawrence! :)
$1799, you heard here first
I bet those safes will feature TouchID and lasers.
Regarding the comments about the watch being obsolete in a year or two…that happens all the time with the MacBook Airs and MacBook Pros…but they don’t go obsolete. Apple will refresh the laptops with better processors, more storage, more memory, better battery life, etc. And you know what? People still come back and buy more or they live with what they have for a few years. I think the same will apply to the Apple Watch. The version 2 next year might have improvements, but it doesn’t mean version 1 is totally useless. Once this thing is formally announced and the street date is released, people will be drooling and asking Apple to take their money…me included.
Frankly it’s all a bit ridiclous partocualrly re the safe. I mean, the quantity of 18 c gold (and lets not forget it’s only the edges ) is fairly minimal on each watch – most gold watches arent in a safe in shops..
this is more about perception to give the allure that these things are worth such a fortune..
I would agree with that…Apple is very good about hyping their products. I’m sure the Apple Watch is going to rock, but this is just extra marketing to fill the time until its launch. Apple has always presented themselves as a high end product so this is no surprise.
The watch faces on the iwatch are just too small. They should fill out the whole square. It doesn’t look right.
What Happens after you bought your super expensive $1500 “gold” Apple Watch. In 5 years time Apple stop software updates so it doesn’t sync to your iPhone 12? not gonna be worth as much as a swiss made time piece is it!….pay that and you need your head examined!
In 5 years it’ll be thinner, if not better, and the hordes will line up for it regardless.
Somewhat surprised I haven’t seen any astute industry follower suggest who Apple’s watch safe supplier might be. Also wondering why Apple wouldn’t associate the weight of the gold watch with each serial number from the start.
I think the speculation of the price may be way over inflated. It can’t have as much gold as a real gold watch, there’s all the electronics, sensors, and screen. At most it’s just the outer casing around the screen and dial. I don’t think I’ve seen an all gold watch band to go with it. Then I can see it getting pricey.