Business
Exclusive: Apple Mines Big Profits from Watch Band
A variety of the new Apple Watch is on display in the demo room after an Apple event on Monday, March 9, 2015, in San Francisco. (AP Photo/Eric Risberg)
(Reuters) – Nearly 20 percent of Apple Watch buyers are not only shelling out hundreds of dollars for the timepiece but are springing for a spare band too, giving the tech giant a profitable second dip into customers’ wallets, according to data provided exclusively to Reuters.
The data from Slice Intelligence, a research firm that mines e-mail receipts, offers a rare window into the money-making potential of Apple’s first brand-new product under CEO Tim Cook.
The ever-secretive company has yet to release how many units of the watch it has sold, let alone how profitable it is. Slice estimates the company has sold 2.79 million as of mid-June.
But if the band purchases are any indication, sales of the watch itself are just the beginning of Apple’s profits.
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