Analysis: Apple is Deliberately ‘Underpricing’ Apple Watch, AirPods to Attract New Users

Apple Watch and AirPods

According to a new report, Cupertino is seemingly underpricing several of its products, specifically the Apple Watch and AirPods as it looks to attract new users into the Apple ecosystem.

This is according to an observation made by Above Avalon’s Neil Cybart, arguing that the current pricing of a few Apple products was unimaginable a decade ago. Apparently, the tech giant is adopting a new pricing strategy that has seen the Apple Watch and AirPods slammed with price tags that, in fact, among the most affordable or even cheapest in some cases.

When Apple’s name became known to everyone thanks to the iPhone, all that has followed are accusations that Cupertino has overpriced products. Well, ten years later, this is not the case any longer. Access any Apple Store in the U.S. and you’ll have a pair of AirPods for just $159. According to Cybart, this price is “surprisingly low” for an Apple product. In fact, he goes further to compare it with a few other truly wireless earphones on the market and apparently, this is one of the cheapest quality earphones out there.

Since their launch in September, it has taken Apple ages to release the AirPods, with the current shipping status showing they’ll ship in six weeks’ time. At the time of launch, the wireless headphone market had the likes of Kanoa priced at $300, Skybuds at $279, Earin at $249 and Motorola VerveOnes+ came in at $249. Cybart claims that if Apple had priced the AirPods at say $249 or maybe $299, there wouldn’t be a lot to talk about. However, pricing the wireless headphones at $159 shows just how badly the tech wants more people to join its niche.

Apple Watch and AirPods

In fact, Motorola’s VerveOnes+ and Earin’s headphones, for instance, are now discounted and selling at $189.99 and $199, respectively, but they are still costlier than the Apple AirPods. So, what is Apple up to hear? Before you make a conclusion, here’s another case that Cybart uses to support his argument.

The current Apple Watch Series 1 and 2 models’ prices start at just $269 and $369, respectively. Again, when compared to other top quality smartwatches, the Apple Watch falls behind the likes of the Garmin Fenix 5 which costs $599, Garmin Forerunner 630 that is valued at $399, Samsung Gear S3 at $349 and even the $279-priced Fossil Q Founder.

With this kind of pricing strategy for the Apple Watch and AirPods, which he even thinks could get as low as $199 for the former, Cybart believes that Cupertino wants to capture not just the high-end market, but rather, the entire wearable market as a whole. This move, according to Cybart, will change the meaning of luxury as we know it where Apple will be offering premium devices at lower prices. With this strategy, it could be tough for other companies to compete with Apple in the wearable market, Cybart concludes.

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