Why did Apple launch the gold version of the Apple Watch at a sky-high price?

Benedict Evans, an analyst at venture capital firm Andreessen Horowitz, recently published an article analyzing the reasons behind Apple selling the gold version of Apple Watch at a sky-high price of $17,000.

After all, not everyone is going to spend $17,000 on a gold-plated Apple Watch. If they are going to buy a $17,000 watch, they would rather buy a mechanical watch because it holds its value better over time and is valued based on its mechanical movement.

Evans believes that the $17,000 Apple Watch is just a marketing strategy for Apple, which can create a luxury atmosphere for the Apple Watch series and help differentiate Apple's smartwatch from other smartwatches on the market. He believes that this is similar to the concept behind Apple's retail stores: Apple retail stores opened in large commercial areas are themselves huge advertisements for Apple.

Evans said in the article: "Apple retail stores opened on the streets of major commercial districts in developed countries are rich media billboards in themselves. I can't imagine any other company having such large advertisements in so many places and in such high-end areas. Apple retail stores are a self-developed marketing activity, and perhaps the gold version of Apple Watch is also the same. This watch may only sell tens of thousands of units, but what impression does it bring to the $1,000 watch or the $350 watch? You know, the most conspicuous products of many companies in the luxury market are extremely expensive, but their revenue mainly comes from cosmetics, perfumes and accessories. You can sell a fashionable dress for $50,000 (or even more) (which may be worn only once), but you can also sell a lot of lipsticks with a brand halo (if you think Apple's profit margin is high, then look at the gross profit margin of perfume)."

Evans also mentioned a small piece of information that has been missed in various reports about the Apple Watch: the entry-level Apple Watch costs $349, which is the lowest price for Apple's various new products when they are launched.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.