Thoughts on the Apple Watch

The Apple Watch's Insanely Great Economics (Wired)
Apple, with its $650 cellphones and $1,500 computers, already makes perhaps the fifth or sixth most expensive item in a high-income household, right behind furniture, luxury goods, TV’s, cars, and homes. And guess what? They’re now in the luxury goods business. There are rumors that they’ve been trying to make a TV for some time. Reports suggest they are investing heavily in making a car. These are high-ticket items, and that’s why the most important thing the Apple Watch might do for Apple is get us used to the idea that Apple makes goods worth spending many thousands of dollars on. More to the point: goods which, like TVs and Cars, are meant to last not just a couple years, but perhaps ten years and beyond. If the Apple Watch is even a modest success among luxury consumers, you can bet the company will be that much more confident about moving into categories such as cars.