The Wall Street Journal is reporting that Apple’s Watch production for the first quarter of this year is on track for 5 million units. Of that 5 million, half are expected to be the less expensive Apple Watch Sport which starts at $350, and one third are the stainless steel watch, which could sell for $500-$750, most likely. That leaves about 850,000 Apple Watch Edition pieces, the more expensive gold model. I believe the watch will sell for around $3,000 or less, though let’s assume it sells for $4,000 as The Wall Street Journal is hearing, for the purpose of this exercise. Let’s also assume a 35% margin on each Apple Watch model on average (conservative), and including extra bands, an average selling price of $400, $650, and $4200 for the Apple Watch Sport, stainless, and Edition models respectively, and also conservative.
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