Apple Watch profits boosted by strap sales

The Apple Watch is already Apple’s most profitable device per unit - costing around £50 to manufacture but selling for £299 - however the company might be making extra profit with customers opting for two straps instead of one.

In a report from Slice Intelligence, who dropped a previous report on the popularity of Apple Watch straps, the direct measurement firm claims 20 per cent of customers are picking up a second strap to accompany the first.

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Considering the most popular strap is the black sport, costing £39, it might not seem that big a deal, but second in the popularity contest is the Milanese loop, costing £129. Other popular straps include the black leather loop and Link Bracelet, both costing £129.

Word on the street is the sports band only costs £2 to manufacture, meaning Apple is taking a huge profit margin on every secondary strap sale. The Milanese Loop and Link Bracelet have a similar manufacturing cost to sale ratio.

Slice Intelligence also claims Apple has sold 2.8 million watch units since launch, a low estimate with other investment firms putting sale numbers over four million. Apple recently announced the Apple Watch was back in stock (for most models) after two months wait.

This is only the start for the Apple Watch, as time goes on we expect more customers will pick up a second or third strap for different times in the day. A sports strap for the gym, a leather loop for business and a milanese loop for going out, potentially.