Apple Watch: An Overnight Multi-Billion Dollar Business by Carl Howe:
“The Apple Watch product line will become Apple’s most profitable product line ever, with gross margins exceeding 60 percent. Why? Because the core electronics modules in the expensive models are the same ones used in the Sport models, and they just don’t cost that much. And while adding Gold cases and designer bands add cost to the bill of materials, the costs are small compared to the price premiums paid for these products.”
A reasonable prediction based on the realities of the Watch as compared to any previous Apple product. Howe’s analysis includes predictions of initial shipments, product line breakdowns, and initial revenue. Definitely worth the read.