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Technology Stocks : Apple Inc.
AAPL 273.85+0.5%Dec 24 12:59 PM EST

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To: Ryan Bartholomew who wrote (166321)2/24/2014 8:36:20 AM
From: pyslent   of 213177
 
"But over time, they will be to consumers who are considering them as a package purchase, especially versus competitors."

In my mind, that's putting the cart before the horse. We don't know whether the smartwatch category will be compelling enough to influence the selection of phone. Until that becomes the case, I see the phone cost as a sunk cost-- the decision to buy it has already been made by the time the watch accessory is under consideration.

Regardless, until the demand for a smartwatch is proven, it will be a luxury good. Most people who buy a $300 phone will not be in the market for even a $200 smartwatch, so the summed cost will be substantially higher for the iWatch user: roughly $950 vs. $300 for the Android user. Add in a Tesla to go with your new iPhone and TCO is starting to get ridiculous :)
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