Apple Watch Edition could be a gold mine for Apple

Apple is preparing five million Apple Watch units for the first round of sales and, according to The Wall Street Journal, the units will be split into:

  • 2.5 million Apple Watch Sport units - $349 (£299) per unit
  • 1.6 million regular units - $399 to $499 (£329 to £379)
  • 900,000 Apple Watch Edition units - $3,999 to $9,999 (£2799 to £6599)

Using the sales from the Apple Watch Edition alone, Apple could rake in £3.2 billion per quarter if it manages to sell just shy of one million units.

That is quite a large number, especially if people with more money than sense decide to buy the Apple Watch Edition; which is essentially the same device wrapped in an 18-karat gold shell.

The $3.2 billion figure doesn't even take into account the potential sales from the Sport and original smartwatches. It does seem surprising that Apple believe one fifth of the buyers are able and willing to spend £2799 on a watch that will be redundant next year.

Apple will be updating the Apple Watch next year with new health and fitness sensors, ruining the illusion that the 18-karat gold option will be a 'timeless' fashion accessory, similar to a Rolex.

We do see people in Dubai purchase gold iPhones and iPads however, so it is not completely out of the question for the Apple Watch Edition to sell like hotcakes with the very rich.

The Apple Watch is set to launch worldwide in April and will be the first real test for Apple in the smartwatch market, following on from the record quarterly report where it managed to sell 74 million iPhones.