Tuesday, April 21, 2015

Experts believe a big mistake a wide range of prices on Apple Watch

Apple has recently started taking orders for its new watch. This stylish gadget is able to monitor the heart rate, to make payments Apple Pay, view messages and e-mail, receive calls (assuming that the watches is connected to the iPhone, you can talk to his own wrist as a cool spy). A rare case for Apple: this time the corporation offers a wide range by combining different options: two versions of housing sizes (38 mm and 42 mm), three types of material (stainless steel, aluminum, and 18-karat gold), lots of bracelets.

Such a wide range of options leads to a significant spread in price from $ 349 (aluminum body, rubber strap) to $ 17,000 (18-karat gold, leather strap with brass buckle). Expert HBReview Rafi Mohammed praised the ambition of Apple, but considers erroneous pricing policy.
"Smart" watches continues the tradition of Apple - a company that is committed to the highest technological sophistication, but trying to break in a new market segment for the company - fashion. Apple is aware that the clock says about the owner of a lot more than smartphones. Mods in New York, the top managers of the Midwest, Hollywood stars - they are all cultured individual taste and have different watches. Apple tried to interest the broad and diverse range of customers by offering a range of options instead of another accessory to your phone, which attracted only to fans of new technologies. During this five.
But pricing puts almost insurmountable obstacles to long-term success.
The first challenge will be to upgrade. The company has long been criticized for its constant updates lead to rapid planned obsolescence of goods. And now, in the near future is expected to appear sophisticated watches because the same thing happens with smartphones - a new version of the iPhone has traditionally released in September. What is the point of spending not that $ 17 000 - $ 3000, even at the watches, which a year already seem outdated and not functional? Comes stupidity. Comes to mind is the famous advertising Patek Phillipe - "You do not own a Patek Phillipe, you pass to the next generation" and the situation of the one who bought Apple Watch - gadget for a year or two.
In addition, buyers hours, unlike purchasers of smartphones do not offer discounts or installment plan to make updates more affordable. If all of the iPhone 6 to pay full price (from $ 649 to $ 849), then in no hurry to update them. The absence of preferential plan for Apple Watch means (at least theoretically), concerned that consumers will likely cost of the upgrade.
Further, the range of prices too big - and it's also a mistake. Typically, a single brand is not trying to cover such a wide range of customers - in the case of Apple Watch price ranges from $ 349 (almost public) to $ 17,000 (extremely expensive). Timex, for example, the content of the lower price category, and more affluent customers drawn Rolex.
The problem that arises for the brand in connection with such a wide spread of prices, exacerbated by the technological features of Apple Watch. With a price tag of buyer subconsciously assumes that the value of "good" (from a technological point of view) things lies somewhere in the middle (in our case, in the neighborhood of $ 8000). In fact, the quality of Apple Watch does not depend on the price, Expensive watch only by precious metals and jewelry, but with such a wide range of prices that fact drops out of sight.

That should make Apple?

First, narrow the range of prices, for example, range from $ 249 to $ 2,000. Yes, we would have to cut an extremely profitable segment Expensive watches, but now the company is much more important to gain mass support. Such a narrow price range would prevent substitution of watches in the next year or two, would retain sufficient choice of options and not be frightened off potential customers. Could offer installments (for example, the cheapest models it would amount to only 11 dollars a month for two years), and the watches would be truly accessible.
Further, Apple must honestly admit that in the near future, technology will be significantly improved. For expensive watches could be offered exchange program (the guaranteed loan, if the owner gets a new version of hours). This will allow customers to cope with the fear that is not cheap purchase soon be obsolete.
Finally, Apple should be closely linked Apple Watch and iPhone. iPhone 6 have already passed the peak of sales, and favorable "package" proposal could attract customers and promote additional sales. It would be extremely successful kill such offer other high-profile release - Samsung Galaxy S6.
Creative use of such a pricing strategy would help corporations overcome major obstacles, and the first generation of Apple Watch would be a good start for the whole product line.
No, of course, rich Apple fans will inevitably arrange a night of crazy shopping. But the company with a $ 183-billion-dollar annual income does not need a single and stable selling watches to reveal their potential. Will maintain the level of sales at such a price policy failed, the question remains open.