After releasing the series 5 watch in a recent event, Apple dropped yet another bombshell. It has slashed the price of the Version 3 smartwatch to $199 which is a significant drop, whilst discontinuing the version 4. This was done in order to create a significant price difference between the latest model and the version 3. Dropping the price of its earlier version in order to boost sales is a marketing strategy that Apple has long since used.
"A cheap price point for Apple Watch is important because a lot of the device's growth right now is coming from consumers who have never owned an Apple Watch before. It is trying, and it seems to be succeeding, to appeal to different demographics with different devices and price points.Apple does base its pricing loosely on the cost of producing a device, but it is more about the price a consumer is willing to pay." declared an analyst, Ben Stanton, in a recent CNN interview.
This price-drop makes the gadget affordable for a larger market. Being priced almost on the same price threshold as Apple’s AirPods, the device has cellular connectivity and doesn’t require a connection to an iPhone in order to function. The multi-million dollar giant has recently introduced a health feature to the watch which has proved to be a raging success and makes it possible to flag down any health-related issues before they happen.