Apple has sold an estimated 2.79 million Apple Watches since it first went on sale about two months ago. Those sales will add up to some nice profits for Apple, especially since 20 percent of those include extra wrist bands that reportedly sport hefty margins.
Apple Watch sales estimated at 2.79 million units so far
Slice Intelligence conducts market research by sifting through email receipts and is estimating some 2.79 million Apple Watches have been sold through mid June. Since all Apple Watch sales to date have been online, using email receipt tracking is likely giving the company some fairly accurate data.
Their data also shows that a substantial number of buyers are also picking up a second band for their new smartwatch. Using cost estimates from IHS, manufacturing costs for those bands are surprisingly low.
IHS estimates the 38mm Apple Watch Sport band costs US$2.05 to make, making the $49 retail price sound surprisingly high. Assuming that's really what the smallest Apple Watch band costs, there's still other expenses that come into play, such as packaging, shipping, and research and design expenses. Going with the rule of thumb 4x cost factor for a completed and packaged product, that still leaves the 38mm Sport band at a little over $8.
Assuming IHS is even remotely close in its estimates, that means Apple is bringing in a serious profit for its Sport watch bands. The other bands Apple sells cost more, but likely have higher overall materials and manufacturing costs, too.
Apple hasn't said how many watches it actually sold, so we're stuck with estimates for now. We may have a more accurate number, either directly or through analyst spreadsheets, when Apple hosts its next quarterly earnings report.
Apple Watch inventory has been tightly constrained ever since pre-order sales started on April 10. That looks to be improving, however, with more online orders making it to customers and watches showing up in retail stores, too.
Regardless of how many watches have sold to date, it'll be intersting to see what impact that has on the company's bottom line at the next earnings report conference call.
[Thanks to Reuters for the heads up]