Apple watch price update: Apple to Reduce Watch Price by $50

Apple watch gets a price reduction of $50

 Apple announced a price cut of 50$ for their entry-level 38mm and 42mm smartwatch. The hardware now will cost 299$ for the 38mm model and 349$ for the 42mm model.

At their 21st special-event, Apple had made the announcement which analysts believe the price drop to be an adjustment for slow sales for apple in the smartwatch category. Apple to the disappointment of watch enthusiasts did not announce a second-generation of wearable much to the speculation of many. Some believe that it won't be available till the second-half of the year due to considerations for a standalone wireless device.

As always apple strive to achieve thinness in all their products to the most possible extent. Hence, the second generation device is expected to be arguably thinner and faster than its predecessor which will also likely to include LTE and Wi-Fi connectivity for their standalone capabilities. The price reductions for their entry level wearable come as Apple plans to expand its focus on technologies to support health and medical research.

Carekit, the software framework for developers of Apple watch indicate that the smartwatch can be paired with an iPhone to facilitate users to actively keep a track of their own medical conditions. Introduction in new apps, a cheaper device and adding colorful fashionable wrist bands is part of Apple's plans to expand its presence in smartwatch user base.

Even as the Cupertino based tech giant claimed that they had in fact reached the #1 position in most sold smartwatches worldwide, it was found to be false as analysts noted. For projected sales of forty million smartwatches of all brands sold, Apple shipped about a little more than thirteen million of them.

People at CES in January admitted that smartwatch market was in fact proceeding slower than expected. Analysts explain that for a $49 sport band, cost incurred by Apple is well below 10$ citing the amount of profit Apple are making on bands as a whole also adding that Apple makes half of the profits of each watch sold.

Meanwhile, health-care management of Apple watch might induce a potential for lower price on future models of entry level smartwatches. There are a few who are cautious about reasons to buy a smartwatch than it being just a fashionable item.

The price drop however puts pressure on competitors like Samsung and even traditional watch manufacturers. It is still concerning about the whole smartwatch market.