Apple Inc. (NASDAQ:AAPL)’s Apple Watch is currently retailing at a discounted price at Best Buy Co Inc (NYSE: BBY), Target Corporation (NYSE:TGT) and B&H. The discount, which is 29% or $100, should not be assumed to reflect animminent release of Apple Watch 2. Apple is using this move to increase customer loyalty to the product and boost its sale in major third party stores. The March 15, event was the expected release date of the product, but now the September event is cropping up as the most favorable time.
Slashing prices are usually marked by high sales in most instances. Apple Watch prices were particularly slashed during the Valentine period. Once a person purchases an Apple watch or is given one, they will also have to have an iPhone or purchase one since the watch is only compatible with it. By Apple selling more Watches, it is also a means of promoting sales of iPhones.
The life cycle of Apple Watch begins to deteriorate once purchased. This means that after a couple of years, users will most probably buy another one. Down the road, lots of updates, better margin, and late adopters will characterize the watch.
During the March event, new brands and partnerships with fashion companies are what should be expected. The Watch will still be the same. There will be new Sport band colors and a black Milanese loop band. There will also be an entirely new band, which will have been made from new material. Aside from the Watch, a new iMac Air, and a 4-inch iPhones are among other products, which will be released.
It is worth noting that Apple Watch discount is only available at third party stores. At the Apple Stores, the watch is retailing at its original price. The main reason behind this is maintaining the right perception. Apple wants to keep a premium perception around this product. Luxury items, the likes of this watch are usually not supposed to be on sale.
At B&H, they also slashed the price of Apple’s first-generation 12-inch MacBook.