The Critical Path #144: The Hookup

Horace and Anders discuss Apple’s brand reorientation from the intellectual and analytical to the emotional and instinctual. Moore’s Law is fundamentally incompatible with luxury so new measures are necessary. What should one call this new paradigm?

via 5by5 | The Critical Path #144: The Hookup.

  • IsaacCrawford

    If the edition will be sold in boutiques, I expect there will be traditional boutique mark up involved. That of course translates into enormous extra profit for Apple when they sell it in their stores.

    I’m willing to bet that the existence of the edition line comes down to China. And by that I don’t mean that people in China like expensive gold things. I think that Apple has to release something at that price there in order for it to be taken seriously as an aspirational brand. We think the people that buy the edition watches are idiots because our less expensive watches are exactly the same. Chinese buyers will like their sport versions more because it is the same watch as the edition. I’ve already seen a lot of tech people express the idea that they are disappointed in Apple because they released such an expensive watch. I would love to see the reaction from the Chinese press.

  • IsaacCrawford

    The more I think about it, the more I think the price of the edition series is the first in what will probably be many cultural clashes between US and Chinese Apple fans. “Luxury” products and brands are seen much differently in China and I’m not sure if the US consumer will ever really get that.

  • berult

    Coining a neologism for Apple’s buoyancy feels like minting Shangri-La’s currency. Misty, yet mesmerizing, …the Apple paradox in a tough-sell.

    For Apple-branded luxury-to-scale, I would venture the anti-moronic aphorism…morrowism. A ‘morrow’ mindset tucked under the happenstance consonance of heroism. Buoyant-morrowism hymns along Trojan-heroism, morrowic…heroic, morrowics…heroics, morrowically…heroically…

    …foolhardily daring to cycle morrow’s main-streams back to their yester tributaries, while striking it rich through locks of awe.


  • neutrino23

    Selling the gold watch does a couple things for Apple. It sets a high ceiling on The watch so that the other two seem much cheaper. There are many examples of companies having a high end model to help the middle sell better.

    Also, it associates Apple with gold whereas their competitors are associated with more pedestrian names. Samsung, for example, sells washing machines and vacuum cleaners. I don’t know what they are thinking but I suspect they have put some thought into it. This reminds one of the old joke about the product which is both a dessert topping and a floor cleaner. Technically maybe possible but who would buy it? Nurturing your brand means being careful what you are associated with.

    Of course, if they can sell some and make a few billion that is good too.

    By the way, the reason the Apple Watch event was on Monday was that they had previously scheduled the shareholders meeting for Tuesday.

    • rational2

      Samsung’s strategy is to build everything at scale and make a bit more money. Their products are generally better than those of mindless copycats, but unfortunately for Samsung, that is not the same as being the best. So while they beat out the clueless mass industrial producers, they can’t compete with the very best in specific categories.

  • AJL

    Apple Watch needs a new name: APPLE WRIST. Not time – place.

  • The Apple Watch Edition debate taking place in the States has to elicit some very interesting opinions from people managing luxury goods brands such as Blancpain (1735), Asprey (1781), Hermes (1837), and Dunhill (1883), just for starters. I assume they find our reactions amusing if not largely irrelevant.

  • jameskatt

    As Horace mentioned, the Gold Apple Watch Edition is VERY AFFORDABLE IF NOT DOWNRIGHT INEXPENSIVE for those who buy $4000 Louis Vuitton handbag(s), $90,000 Mercedes-Benzes, $3,000 Burberry Coat(s), Fashionable clothing is expensive and you want a whole walk-in closet-full.
    All you have to do is go to any large city such as Los Angeles and see who has purchased a $50,000+ luxury car. There are hundreds of thousands if not millions of them in Southern California. These are the people for whom a $10,000 Apple Watch Edition is an easy purchase and is NOT SHOCKINGLY PRICED AT ALL. And the vast majority of them own Macs and iPhones anyway.