Why Watch price in thousands of dollars

you would pay several thousand dollars for Apple-gadget, made of gold? Not a fact, right? Nevertheless, the company is willing to bet that there are such people. Watch Edition 18-karat gold is likely to be worth more than a thousand dollars, despite the fact that they are functionally no different from the models in aluminum and steel body. Who will buy them? Well, this question could answer the guys from Vertu.

British manufacturer of premium high-end phones, Vertu has become the first technology company nominally in the market sverhdorogoy electronics and the first technology company that realized that people are buying Hermès bags for $ 4000 is not due to their roominess. Apple bend under him almost the entire market of traditional high-end smartphones, but will Watch Edition potentially huge audience of people interested in technology and luxury, who understand why we need Vertu phones. Here is what this bill Ignacio Hermann, creative director of Vertu:

These people do not even look at the clock in aluminum. Our customers do not like plastic or aluminum, as well as products that use Gorilla Glass. They want something that will match the rest of the things that they have. If they watch uses sapphire, they want it to be in your phone.

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Vertu was established as a luxury-department of Nokia, but after 2012, the company became independent. They create a phone for a few thousand dollars of very expensive materials, each instance is hand-assembled by one person, leaving his name on them all collected phones. Often derided by other market players, business models are based on the quality-price ratio, your Vertu, however, gets good profits from sales and stands firmly on its feet.

Mods use Apple products because the market few decent alternatives.

Apple understands how high the stakes are in the fashion industry and what new horizons will be opened on it, otherwise why would Tim Cook had to hire such professionals like Angela Ahrendts and Paul Deneuve.

The big advantage in this case is the fact that Apple is more trusted than its competitors. "This is the only" branded "technology company", - says Martin Webb, founder of the PR-agency of the Communion of Tokyo who heads the brand Marc Jacobs in Japan. "Mods use Apple products because the market few decent alternatives." Fans of Apple's competitors may not like it, but it really is true. Go to the store Marc Jacobs, and you can hardly find there HTC One M8s. But this is just a phone, releasing Watch Edition, Apple with a head dive into the world of fashion and luxury.

Some believe that high prices do not make sense or, as unjustified least for consumer electronics. This is especially true wearable gadgets, emerging niche technologies which will become obsolete in a few years. Known blogger John Gruber considersThat Watch Edition will be too expensive to interest addicted to technology users. He also asks Apple could use the trade-in program (when you buy a new gadget, extinguishing part of its cost old), or make stuffing clock updated to make them buy more justifiable and regard it as a kind of investments.

These purchases were made in the heat of passion.

"Phone in some way similar to the car" - said germadiyl group, when asked whether their customers are concerned about the fact of technological obsolescence. "You do not buy a car with premium because take it to the next 10, 20 or 100 years of his life. You buy it because you want to get the best user experience, even if you are driving a car a couple of times a week. In this case, the price at which you buy a car and the price at which you can sell it - are quite different, and in fact for such short-term use, it is a huge investment. "In other words, people are ready to pay several thousand dollars for a 18-carat gold Watch, which perform the same functions as the 350-dollar aluminum, will do this every few if necessary years old.

Technology industry is very nepriemlet idea when the product price is not tied to its performance and functionality, and to something else. However, such principles avoids the truth, which is that a good technological product it is possible to position for the audience to pay attention to fashion and luxury. Smartphones and wearable electronics, these are the devices that are with us every day, and this in technology companies have great potential, which can provide them with an even higher penetration into our lives. Why, then, these devices do not become more personalized, luxurious and, yes, more expensive? Apple has promised us "the most personal device that the company has ever created," and users see it as part of their daily lives, because dear Watch, designed for lovers of luxury, it can have the same meaning as phones Vertu.

Watch Edition will be difficult to gain the trust of customers at the highest level.

However, it is not clear whether Watch Edition self-contained product. In the end, they are exactly the same as the 349-dollar version, not including materials. "I do not know what will be the price for Watch Edition, but I doubt that it is closer to the prices of luxury-segment traditional hours", - says Webb. "Do not forget that a high-level consumers in the world of watches paying $ 75,000, 250000 $ and even more, "- reminiscent of Gene Stone, author of the publication The Watch. "My understanding is that wealthy people are willing to pay for the functionality of hours, and not only because of their appearance. My hours are longer than yours. With the same display and form factor Watch Edition will be difficult to gain the trust of customers at the highest level. "

Even if the watch will be attractive, it is difficult to imagine the queue of those wishing to buy their crowded Apple Store - in such a situation to make purchases for a few thousand dollars. Customer support is an important part of Vertu sales and it includes a 24-hour accessibility consultation and the opportunity for personal contact with the manager of each store, even for those customers who are still going buy Vertu. "Of course, much depends on the quality of the product, but the key points of the sales strategy for the premium products are significantly different," - says Webb. Apple will have to assemble a team that will have to establish a long and complex sales process, as established existing strategy is unlikely to work for new types of customers. All this may require a complete rethinking of experience in retail sales in general.

Watch open a new category of products for the company and Watch Edition is a trial balloon for a whole new category of users. But even with the best Apple's reputation in fashion circles than that of its competitors, it is unclear if it will wearable electronics company's popularity outside the circles of the early adopters. "If they do not focus on a certain segment of people, it will be just another gadget," - Gauvreau germadiyl group of Vertu. "Personally, I'm not interested gadgets like all our clients.» Watch have an attractive design, and the variety of straps involves great customization options, but Will this be enough to overcome the fundamental nature of fashion, the truth of which is that everything will be worn on their wrists the same device? Will these straps meet the individual needs of each user, that is the question.

As then with the iPhone, Apple is now the main task of distributing them Watch is a demonstration of how an important part of modern daily life, they should be. This is how Vertu justifies the prices of their products - your phone is the most important object that you own, so why not make it as special and personalized, in all relations. Apple's, it might be easier to bring to market a premium iPhone, which has become a product, create a new niche, and changed the world. But what about Watch?

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