M.G. Siegler:
Last year, Rolex did $4.5 billion in sales. A solid year for the premium watchmaker. Of course, it was no Apple Watch. That business did roughly $6 billion in sales, if industry estimates are accurate.
The point here isn’t to compare the two devices — an Apple Watch is just about as comparable to a watch as an iPhone is to a phone. But it does provide an interesting context for Apple’s fledgling business — a new product category which has come under a lot of scrutiny since its launch a year ago. Many have called it a “flop,” which, again, is interesting in context.
Leaving aside the “…if industry estimates are accurate…” (they’re not), the media in general and the tech media is particular always seem to need to see everything in absolute terms. The Apple Watch is most certainly not a flop – nothing that sells millions of copies at $500+ a pop can be called that.
WS is a flipping joke. If you assume an ASP of $12k for a Rolex, Apple sold 40 times more Apple Watches than Rolex did in a year. In other words: Rolex: 375k units sold. Apple: 15M units sold ($6B divided by $400 ASP).
It is quite a sneaky object, too. Bought the steel model with the blue leather loop when it became available. Have since bought the steel link bracelet, 4 classic buckles, one more leather loop, two Hermès single tours and the cuff. Considering I bought my last Mac in 2012 (then top of the line 15″ Retina MBP with all BTO options, still more than sufficient for everything I do), they really did find some mean to get my money otherwise.
This is a specious comparison. Day Break was a massive flop for ABC in 2006. It averaged 6.5 million viewers through it’s partial first season. In comparison, Game of Thrones never topped 5.5 million viewers in its first 3 seasons. Somehow I don’t think Day Break is going to be considered as big a success as GoT Seasons 1-3.
Here we go again. Everyone says an Apple is a flop and the world is against us. 🙂
Yes. A specious comparison. In fact, two of them.
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