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Technology Stocks : Apple Inc.
AAPL 273.85+0.5%Dec 24 12:59 PM EST
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slacker711
To: Ryan Bartholomew who wrote (166272)2/22/2014 8:39:12 PM
From: pyslent1 Recommendation  Read Replies (1) of 213177
 
"But I would never consider paying $300 for such a thing if my phone itself runs $500."

Adding up all the costs certainly increases the sticker shock, but that's the wrong way to think about it. The Phone is a sunk cost. They question is whether Apple can get an iPhone user to spend $300 for added functionality. Of course, that depends on the functionality, but the people who would consider doing so are the ones that could afford to spend $500 on a phone. Those people are MORE likely to buy a smartwatch, not less.
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