Thursday, 12 March 2015

The Apple Watch $10k price isn't crazy, it's an Anchor

Orbiting the sun "at a distance of roughly ninety-eight million miles is an utterly insignificant little blue-green planet whose ape-descended life forms are so amazingly primitive that they still think digital watches are a pretty neat idea."
(Douglas Adams, The Hitchhiker's Guide to the Galaxy)

Want to sell lots of $350 watches that do cool stuff but are really first generation products that will only work usefully with an associated $300 plus iPhone nearby? Put them on sale next to a $10,000 watch that does the same thing. Anchoring is a powerful sales tool and Apple are using it.