I wrote this answer on Quora and thought it’s worth sharing on here as well.
Answer by Bayan Qandil:
The answer to this is not answered by technology strategy but rather economics. The resale market for Apple Watches will decide the value of the resale of the high end model. The key question will be what the valuable attributes of the watch will be. Typically resale items hold value due to:
- Brand – think Rolex
- Quality – think German cars
- Scarcity – think limited edition
Apple branded products typically have higher resale value than other brands in the same market. The question will be whether the brand value is worth multiple times than the depreciation of the outdated electronics in the device.
Apple’s quality is always high but that’s in electronics. How will they fair in the quality clockwork mechanism and components?
Apple is also attempting to make these high end models of the Apple Watch limited in numbers but at the end of the day, I don’t believe a robust resale market is in Apple’s best interest as it dilutes their future sales. This compares to DeBeer’s and the diamond resale market. They fight to make diamonds have lower resale value and high sentimental value to discourage resale thereby increasing new product sales.
My personal opinion is that the resale value will be fairly low. But the market will decide over time.
You can find the original answer here: