Did you do your math like you’re supposed to, Mr. “CEO”? Because apparently you don’t have a clue what you are saying. At $200 profit per watch, the maximum gains from 12 million sold is $2.4B. The program cost approximately $5B for R&D, tooling, etc. The first year alone means a total LOSS of $2.6B. 2 months will sell about 200,000 units total, especially in Q1.
When you create a new product as a MATURE company, it better damned well make a profit, or at least break even. Apple knows this. That’s why they set a target of 20,000,000, then proceeded to OBVUSCATE the numbers to hide their loss. They’re 8M short, a loss, loss, LOSS. Not painting a pretty picture for Apple’s new “flagship” turd.
Regardless of segment success, companies aren’t in the business of being segment leaders in LOSSY segments. Smart watches are going nowhere. Otherwise competitors would be flocking to it. I’m sorry, Mr. Swordmaker, if you feel this to be a success, it’s a good indicator why you aren’t a “CEO” at all, or an out-of-work one at best.
You ARE completely off-the-deep-end delusional.
Why, yes, I did do my math correctly. . . and there are no quotations around my previous title, you delusional asshat. As I said, you are entitled to your delusional opinions, but you are not entitled to create your own delusional facts out of whole cloth. That's lying, which you do repeatedly.
Who in hell provided you with these figures, Marxists asshat? Not Apple, I assure you Apple did not, because Apple does not publish such detailed information. That kind of data is considered proprietary company secrets.
I provided links to my sources of where those data originated which is where YOU got the 20 million first year (12 month) estimate of Apple Watch sales, and it did NOT originate from Apple Inc. It was from Horace Dediu at Asymco and then Philip Elmer-DeWitt at Fortune Magazine both qualified sources, and both of whom were repeatedly quoted by multiple other sources, but neither one of them associated with Apple and neither one received their data from Apple.
Who told YOU that it cost Apple $5 BILLION, 75% of Apple's 2014 Research and Development budget, which is where it would have been allocated, to develop the Apple Watch? Again that false information did not come from Apple Inc. I've never seen it promulgated anywhere except from YOU. Apple certainly did NOT expend six thousand million dollars to develop the Apple Watch, an iPhone accessory, which is certainly not an Apple "flagship" product, as you mischaracterize it. You, Marxists, pulled that absurd figure out of your tight delusional asshat.
But, even assuming your figure is correct, Up Yours Marxists, it is ALREADY INCLUDED in the COSTS associated with the expenses deducted from the revenues. That is required by the Generally Accepted Accounting Practices (GAAP) that the reports which Apple uses to account for all of its Financial Activities to the Securities and Exchange Commission (SEC). In other words, those costs are already accounted for and the profits are the profits. YOU are therefore lying again, because YOU are the one who doesn't have a clue about business, accounting, or pretty much anything about economics.
So, where is your fictitious "loss, loss, LOSS"? Nowhere. If you think Apple can get away with LYING on a 10K or a 10Q, make the criminal accusation and make it stick! There's a $20 MILLION Federal criminal fine and up to 20 years in Federal Prison for Corporate Officers and Managers who falsify official documents submitted to the SEC obfuscating such Financial Data. You are literally accusing the CEO and the CFO and the entire management team of Apple of perpetrating a Federal felony under Sarbanes Oxley and you have absolutely no evidence to back your claims.
During the time Apple was developing the Apple Watch, the company was also working on its actual flagship products, the iPhone 6, 6 plus, and then the iPhone 6S and 6S plus, and making major improvements. They were also working on a not so secret major project, the Apple Car, involving over 3000 new employees. Each of those projects alone could account for a lot more of the research budget than $5 billion, yet you attribute Apple with spending that on an accessory. Absurd.
Where did you get your "2 months will sell about 200,000 units total, especially in Q1" estimate? Again, you pulled that absurd guesstimate out of your nethermost orifice. . . which apparently you also speak from when making prognostications. Apple just sold 12 million in 7 months and now you project only 100,000 per month? WHY? Apple is selling that almost that many Apple Watches every 2 days! What's your rational explanation for the sudden drop from an average 1,714,000 per month to only 5.9% of what had been sold per month before? Can you give any rational reason? Oh, wait, you AREN'T rational. Regardless of segment success, companies aren’t in the business of being segment leaders in LOSSY segments. Smart watches are going nowhere. Otherwise competitors would be flocking to it. I’m sorry, Mr. Swordmaker, if you feel this to be a success, it’s a good indicator why you aren’t a “CEO†at all, or an out-of-work one at best.
Uh. "Lossy segments?" Only in your delusional Universe which you seem to occupy by yourself, Up Yours Marxists. Must be lonely out there. None of the porducts included in what you claim is a "lossy segment" are posting losses. NONE. Apple has not taken a write down in decades. Sorry, you are not only wrong, you are spectacularly wrong.
I am only semi-retired, asshat, not "out-of-work." You are really a piece of work. You demonstrate the bankruptcy of your arguments by attacking me personally because you have no logical argument against my points, only lies.