iWatch Demand Will Be Price Sensitive
When Apple finally unveils its long-rumoured smartwatch, allegedly called ‘iWatch’, one of the biggest questions will not be whether it can make phone calls, track calories or measure your heartbeat, it will be how much it costs.
According to the results of a survey published by investment firm Piper Jaffray in June, 31% of the respondents would be willing to pay between $100 and $200 for the rumoured iWatch, and only 15% would be willing to pay more than $300. Considering that the respondents in Piper Jaffray’s survey skew affluent with an average household income of $130,000, the willingness to pay in the general population is probably even lower.
The overall low willingness to pay for the iWatch could become a problem for Apple. Rumours have it that the company's first venture into wearables could be priced around $400, which would limit the device's appeal in the eyes of many consumers. However, Apple appears to be pretty bullish about the upcoming device: first Apple's chief designer Jony Ive jokingly suggested that Switzerland (one of the largest watch-making nations in the world) could be in trouble, and then the company invited a number of high-profile fashion journalists to Tuesday's launch event.
This chart shows how much North American consumers would be willing to pay for Apple's long-rumoured iWatch.
You will find more statistics at Statista