In a new investor note today, Bernstein analyst Toni Sacconaghi has a bizarre suggestion for Apple: sell an Apple Watch for under $250. Why is that bizarre? Well, you can pick up the Apple Watch Series 3 directly from Apple, in brand new condition, for $199.
In the investor note (via PED30), Sacconaghi says that Apple could sell 10 times as many Apple Watch units by offering a less expensive model, marketed as “an essential health monitoring device.”
Sacconaghi’s pitch is that Apple should specifically market this affordable Apple Watch to older users, with health features that could monitor for “a hard fall, serious cardiovascular or circulatory issues, blood sugar levels, or maybe even coronavirus.”
How big could this market be? Sacconaghi says it could reach billions of users:
In Sacconaghi’s defense, he seems to be arguing for an Apple Watch that’s affordable yet still includes all of the latest and greatest health features. Theoretically, this model could forego some of the more tech-focused features, and instead focus on health and fitness. For instance, the Apple Watch Series 3 starts at $199, but it lacks support for some of the more modern features like ECG and fall detection.
What do you think of this argument? Should Apple offer a purely health-focused Apple Watch at a sub-$250 price point? Let us know down in the comments!
