Apple Inc.'s new smartwatch will be the most expensive one on the market: the Apple Watch Edition, which will cost up to $17,000 when it becomes available on April 24. The watch features a case made of 18-karat gold, and a display shielded by polished sapphire crystal; and it has the same target market as Rolex. But is it worth the price?
Tim Cook, Apple's CEO, recently demonstrated the Apple Watch in San Francisco. It will be the company's first totally new produce since the death of Apple founder Steve Jobs, according to The Guardian.
The values of mechanical watches have historically held or risen. However, today's smartwatches are likely to decrease in value since their digital technology becomes obsolete within time.
For example, when the Apple II was unveiled in 1977, it was the essence of modern computing, and had a price tag of about $1,300. Today you can purchase a secondhand model on eBay for a mere $50, according to SFGate.
People usually wear watches and then when a new model is available they "recycle it out," says Jacek Kozubek, a watch dealership partner.
He explained that Rolexes in the same price range are more likely to keep their value than an Apple Watch. Some timepieces that Kozubek's store has bought were worth $400 in 1968, but now have a price tag of $120,000," he revealed.
Another advantage of mechanical watches is their durability. Kozubek shared that he recently purchased one that had not been serviced for over five decades, in 1958-yet it was still amazingly precise.
On the other hand, the technology of smartwatches continues to evolve. Every few years processors improve, which in a sense makes all previous versions as cool as typewriters.
Interestingly, when technology stays relevant for a long period, it can become a problem for tech giants. For example, one reason the iPad's sales have dropped is that earlier versions still work OK today. If it is not broken, consumers will not replace it.
The majority of Apple Watch buyers will not buy the priciest models, but instead will simply replace it with the newest model. Will the high-end Apple Watch Edition suffer the same fate?